2019 supplement to the integrated report...energy transition initiatives enabling the process of...

2019

|

Sup

plem

ent t

o th

e In

tegr

ated

Rep

ort

Cons

olid

ated

Dis

clos

ure

of N

on-F

inan

cial

Info

rmat

ion

in

acco

rdan

ce w

ith

Ital

ian

Legi

slat

ive

Dec

ree

n. 2

54/2

016

Supplementto the Integrated Report

2019

Consolidated Disclosureof Non-Financial Informationin accordance with ItalianLegislative Decree n. 254/2016

2020-2024 Sustainability Plan 2

Stakeholder engagement and materiality analysis 10

Financial capital 20

Manufacturing capital 23

Natural capital 27

Human capital 39

Relational capital 49

The Acsm Agam Group 68

Contents

2020-2024 Sustainability Plan

2


CIRCULAR ECONOMY

ACTION KPIS UNIT OF MEASUREMENT

2017 2018 2019 2024 OBJECTIVE

RECOVERY AND TREATMENTImprove the recovery process of waste collected (including through their transformation into energy) and promote separate waste collection to help reduce the environmental impact of cities

Urban waste at landfill % of total municipal waste collected 1% 0.3% 0.1% 0%

Percentage separate waste collection in the municipalities served (apart from Milan)

% of total municipal waste collected 70.2% 74.4% 74.1% 76%

Percentage separate waste collection in the city of Milan % of total municipal waste collected 53.8% 59.7% 61.5% 65%

Waste treated (municipal + special) aimed at recovering material at the Group’s plants

thousands of tonnes 888 926 980 1,500

Waste treated aimed at energy recovery at the plants managed by the Group

thousands of tonnes 2,355 2,471 2,457 2,700

CSS produced by Group's plants thousands of tonnes 132 129 130 528

Biomethane produced by FORSU plants (Organic Fraction of Urban Solid Waste) millions of m3 - - NEW 20

REDUCTION POLICIESReduce the production of waste through a prevention, reduction and reuse policy

Territories where waste prevention and reduction actions are active

% of total inhabitants served - 81% 82% > 80% / year

Investments allocated to the development of technologies and services linked to the circular economy cumulative millions of euro 49 42 33 725

RISK MANAGEMENTVerify that the system used to identify, manage and prevent business risks adequately covers sustainability risks (and, in particular, social-environmental risks), also in organizational terms

Specific Risk Intelligence system for ESG risks progress launched ongoing ongoing Finalize at 2022

WATERImplement actions aimed at reducing water consumption in capture and distribution processes, reducing water dispersion and improving the quality of water returned to the environment

Linear water losses - average m3/km/dd 27.6 27.8 26.0 21.0

Percentage of equivalent inhabitants without access to the purification service

% of total AE at 12/31/2016 in

the municipalities served

- 21.7% 18.0% 7%

Percentage of new generation water service meters installed - cumulative value % of total meters - REVISED 22% 76%

Intelligent sensors installed for water service - cumulative value no. - 27 62 170

BIODIVERSITYAdhere to projects aiming to protect the soil and protected species, monitoring and protecting biodiversity in the territories of competence

Ranked plants in terms of potential impact on biodiversity % of plants under analysis - - NEW 100%

(at 2020)


Stakeholder engagement and materiality analysis

Financial capital

Manufacturing capital

Natural capital

Human capital

Relational capital

The Acsm Agam Group

A2A 2019 Integrated Report - Supplement

3

CIRCULAR ECONOMY


2017 2018 2019 2024 OBJECTIVE

RECOVERY AND TREATMENTImprove the recovery process of waste collected (including through their transformation into energy) and promote separate waste collection to help reduce the environmental impact of cities

Urban waste at landfill % of total municipal waste collected 1% 0.3% 0.1% 0%

Percentage separate waste collection in the municipalities served (apart from Milan)

% of total municipal waste collected 70.2% 74.4% 74.1% 76%

Percentage separate waste collection in the city of Milan % of total municipal waste collected 53.8% 59.7% 61.5% 65%

Waste treated (municipal + special) aimed at recovering material at the Group’s plants

thousands of tonnes 888 926 980 1,500

Waste treated aimed at energy recovery at the plants managed by the Group

thousands of tonnes 2,355 2,471 2,457 2,700

CSS produced by Group's plants thousands of tonnes 132 129 130 528

Biomethane produced by FORSU plants (Organic Fraction of Urban Solid Waste) millions of m3 - - NEW 20

REDUCTION POLICIESReduce the production of waste through a prevention, reduction and reuse policy

Territories where waste prevention and reduction actions are active

% of total inhabitants served - 81% 82% > 80% / year

Investments allocated to the development of technologies and services linked to the circular economy cumulative millions of euro 49 42 33 725

RISK MANAGEMENTVerify that the system used to identify, manage and prevent business risks adequately covers sustainability risks (and, in particular, social-environmental risks), also in organizational terms

Specific Risk Intelligence system for ESG risks progress launched ongoing ongoing Finalize at 2022

WATERImplement actions aimed at reducing water consumption in capture and distribution processes, reducing water dispersion and improving the quality of water returned to the environment

Linear water losses - average m3/km/dd 27.6 27.8 26.0 21.0

Percentage of equivalent inhabitants without access to the purification service

% of total AE at 12/31/2016 in

the municipalities served

- 21.7% 18.0% 7%

Percentage of new generation water service meters installed - cumulative value % of total meters - REVISED 22% 76%

Intelligent sensors installed for water service - cumulative value no. - 27 62 170

BIODIVERSITYAdhere to projects aiming to protect the soil and protected species, monitoring and protecting biodiversity in the territories of competence

Ranked plants in terms of potential impact on biodiversity % of plants under analysis - - NEW 100%

(at 2020)


4

DECARBONISATION


2017 2018 2019 2024 OBJECTIVE

DISTRICT HEATINGHelp reduce the environmental impact of the cities, paying close attention to air quality, implementing district heating and district cooling

Volumes served by district heating and district cooling (Mm3) millions of m3 107.8 110.2 112.2 125

NOx avoided thanks to the extension of district heating tonnes / year 138 139 194 265

CO2 emissions avoided thanks to the extension of district heating tonnes / year 181,136 211,197 213,701 321,000

Realization of the decarbonization project of the Brescia district heating system (105,000 tonnes of CO2 savings) progress - - - Start by 2022

SUSTAINABLE MOBILITYDevelop sustainable mobility solutions (low-emission waste collection vehicles and vehicle fleet, replacement of obsolete vehicles with new ones)

Percentage replacement of Networks and District Heating BU vehicles with low environmental impact (methane gas and electric powered) - cumulative value

% of total vehicles of the Networks

and District Heating BU

- REVISED 41% 61%

Number of low environmental impact waste collection vehicles (Euro 6 vehicles, methane gas, electric) - cumulative value

% of total waste collection vehicles 27% 38% 54% 72%

EMISSIONSDevelop actions aiming to reduce the environmental footprint, like direct and indirect emissions of greenhouse gases

CO2 absolute emissions from electricity generation thousands of tonnes 6,299 5,701 5,211 5,111

Δ compared to 2017 - -9% -17% -19%

Emissions factor for electricity production plants gCO2/kWh 419 374 335 314

Δ compared to 2017 - -11% -20% -25%

Group SO2 emissions tonnes 1,480 1,300 917 558

Total methane emissions avoided from distribution networks - cumulative values with respect to 2015 (tCO2eq) tonnes in CO2eq 17,145 24,078 29,119 94,000

Purchase of 100% renewable energy for Group consumption % of total consumption - - NEW 100%

RENEWABLESIncrease the proportion of energy produced from renewable sources

Installed photovoltaic capacity MW - 94 99 500

Percentage of thermal energy produced from renewable sources and process recovery with respect to total thermal energy collected into the district heating network (Networks and District Heating BU)

% of total 51% 51% 54% 55%

Thermal energy recovered from third-party production processes (Networks and District Heating BU) GWh 45 43 45 81

ENERGY TRANSITIONInitiatives enabling the process of transition to a low-carbon economy, which allow to keep the system secure

Initiatives such as storage, CCGT flexibility and repowering and synchronous compensators no. - NEW 1 5

SMART NETWORKSDevelop solutions to offer a better information access infrastructure (Smart Grid) and improve the network resilience

Users with smart gas meters active (G4-G6) - Networks and District Heating BU perimeter % of total - REVISED 86% 98%

Percentage of users with 2G electricity smart meter (Unareti) % of total - - NEW 96%

Annual average number of outages per LV user in high concentration environment (700A) due to long outages without notice

no. 1.36 1.43 1.61 1.05

Investments in Smart Grids - cumulative value 20-24 millions of euro 22 40 44 193



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


5

DECARBONISATION


2017 2018 2019 2024 OBJECTIVE

DISTRICT HEATINGHelp reduce the environmental impact of the cities, paying close attention to air quality, implementing district heating and district cooling

Volumes served by district heating and district cooling (Mm3) millions of m3 107.8 110.2 112.2 125

NOx avoided thanks to the extension of district heating tonnes / year 138 139 194 265

CO2 emissions avoided thanks to the extension of district heating tonnes / year 181,136 211,197 213,701 321,000

Realization of the decarbonization project of the Brescia district heating system (105,000 tonnes of CO2 savings) progress - - - Start by 2022

SUSTAINABLE MOBILITYDevelop sustainable mobility solutions (low-emission waste collection vehicles and vehicle fleet, replacement of obsolete vehicles with new ones)

Percentage replacement of Networks and District Heating BU vehicles with low environmental impact (methane gas and electric powered) - cumulative value

% of total vehicles of the Networks

and District Heating BU

- REVISED 41% 61%

Number of low environmental impact waste collection vehicles (Euro 6 vehicles, methane gas, electric) - cumulative value

% of total waste collection vehicles 27% 38% 54% 72%

EMISSIONSDevelop actions aiming to reduce the environmental footprint, like direct and indirect emissions of greenhouse gases

CO2 emission factor from electricity generation thousands of tonnes 6,299 5,701 5,211 5,111

Δ compared to 2017 - -9% -17% -19%

Emissions factor for electricity production plants gCO2/kWh 419 374 335 314

Δ compared to 2017 - -11% -20% -25%

Group SO2 emissions tonnes 1,480 1,300 917 558

Total methane emissions avoided from distribution networks - cumulative values with respect to 2015 (tCO2eq) tonnes in CO2eq 17,145 24,078 29,119 94,000

Purchase of 100% renewable energy for Group consumption % of total consumption - - NEW 100%

RENEWABLESIncrease the proportion of energy produced from renewable sources

Installed photovoltaic capacity MW - 94 99 500

Percentage of thermal energy produced from renewable sources and process recovery with respect to total thermal energy collected into the district heating network (Networks and District Heating BU)

% of total 51% 51% 54% 55%

Thermal energy recovered from third-party production processes (Networks and District Heating BU) GWh 45 43 45 81

ENERGY TRANSITIONInitiatives enabling the process of transition to a low-carbon economy, which allow to keep the system secure

Initiatives such as storage, CCGT flexibility and repowering and synchronous compensators no. - NEW 1 5

SMART NETWORKSDevelop solutions to offer a better information access infrastructure (Smart Grid) and improve the network resilience

Users with smart gas meters active (G4-G6) - Networks and District Heating BU perimeter % of total - REVISED 86% 98%

Percentage of users with 2G electricity smart meter (Unareti) % of total - - NEW 96%

Annual average number of outages per LV user in high concentration environment (700A) due to long outages without notice

no. 1.36 1.43 1.61 1.05

Investments in Smart Grids - cumulative value 20-24 millions of euro 22 40 44 193


6

SMART SOLUTION


2017 2018 2019 2024 OBJECTIVE

QUALITYMaintain high quality standards of the services supplied by keeping high customer satisfaction levels

CSI Total (Cerved) Customer satisfaction index

Domestic gas 90.1 (national average

89.4) Domestic electricity 91.2

(national average 89.7)




n.a. > national average and never < 90%

CSI Call Center A2A Energia (first half of the year) Customer satisfaction index

95.7 (national average 93.2)

98.1 (national average 92.3) n.a. > sector national

average

DIGITALDevelop innovative channels and services (web, mobile, gamification) to increase customer loyalty

Customers registered with the online service no. 356,155 391,626 425,985 700,000

Active supplies bollett@mail no. 372,811 433,333 536,143 900,000

E-mail bills related to the Integrated Water Cycle % of total - NEW 7% 20%

Interventions on Group sites for evolved interactivity - cumulative value no. 6 6 11 16

INNOVATION AND R&DDevelop investments in Research and Development, increasing the number of partnerships with international research centres and universities. Develop new technologies, patents for technological innovation.

Open innovation projects launched through Shark Tank, consistent with the objectives of the Sustainability Plan no. - - NEW 75

Investments in start-ups through Corporate Venture Capital A2A Horizon initiative no. - - NEW 10

GREEN MARKETINGImplement customer sensitisation and communication campaigns

Green energy sold to the mass market segment GWh 909 1,065 1,213 2,100

EFFICIENCY IN END USEDevelop energy efficiency interventions on the public and private real estate assets

CO2 avoided thanks to measures to promote energy efficiency in end use: offer LED kit - cumulative value tonnes REVISED 2,802 4,051 9,200

CO2 avoided thanks to measures to promote energy efficiency in end use: industrial ESCO activities - cumulative value tonnes 696,963 1,844,329 2,302,124 5,700,000

CO2 avoided from boiler conversion projects and PV installations (condominium/tertiary) - cumulative value tonnes - NEW 906 35,000

SMART CITIES Support the development of the smart city in the territory in which the Group operates, including through new business models that exploit the technological component (smart grids and big data)

New LED lighting points installed (totals provided for in the agreements signed with the municipalities) no. REVISED 232,368 275,950 417,000

Installed LED traffic lights no. 12,069 12,069 14,618 23,000

Charging points managed for electric vehicles no. 130 168 198 1,500

Smart City services activated - cumulative value no. - 7 40 250

Municipalities with Smart City services activated - cumulative value no. - 2 24 50

Parking spaces installed in smart parking - cumulative value no. - 711 2,580 4,000

Businesses served with new smart land services - cumulative value no. 1 2 10 20

Smart environmental bins - cumulative value no. 300 6,663 12,880 18,000

Vehicles monitored by GPS % of total - 81% 97% 100%

DISADVANTAGED GROUPSPromote beneficial tariffs or other solutions for users in difficulty (e.g. Banco dell’Energia)

Funds collected by Banco dell’Energia millions of euro/year - 1 1 1 (to 2020)

ICT - CYBERSECURITYInfrastructure develpoment and improvement projectsof IT platforms and application. Adoption of defence mechanisms and protection against logical, viral attacks

Achievement of ISO27001 certification progress - - NEW Achievement

Operators of Networks and Distrcit Heating BU equipped with digital tools for mobile work (WFM)

% of total target population - 51.5% 85% 100% (at 2020)



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


7

SMART SOLUTION


2017 2018 2019 2024 OBJECTIVE

QUALITYMaintain high quality standards of the services supplied by keeping high customer satisfaction levels

CSI Total (Cerved) Customer satisfaction index







n.a. > national average and never < 90%

CSI Call Center A2A Energia (first half of the year) Customer satisfaction index

95.7 (national average 93.2)

98.1 (national average 92.3) n.a. > sector national

average

DIGITALDevelop innovative channels and services (web, mobile, gamification) to increase customer loyalty

Customers registered with the online service no. 356,155 391,626 425,985 700,000

Active supplies bollett@mail no. 372,811 433,333 536,143 900,000

E-mail bills related to the Integrated Water Cycle % of total - NEW 7% 20%

Interventions on Group sites for evolved interactivity - cumulative value no. 6 6 11 16

INNOVATION AND R&DDevelop investments in Research and Development, increasing the number of partnerships with international research centres and universities. Develop new technologies, patents for technological innovation.

Open innovation projects launched through Shark Tank, consistent with the objectives of the Sustainability Plan no. - - NEW 75

Investments in start-ups through Corporate Venture Capital A2A Horizon initiative no. - - NEW 10

GREEN MARKETINGImplement customer sensitisation and communication campaigns

Green energy sold to the mass market segment GWh 909 1,065 1,213 2,100

EFFICIENCY IN END USEDevelop energy efficiency interventions on the public and private real estate assets

CO2 avoided thanks to measures to promote energy efficiency in end use: offer LED kit - cumulative value tonnes REVISED 2,802 4,051 9,200

CO2 avoided thanks to measures to promote energy efficiency in end use: industrial ESCO activities - cumulative value tonnes 696,963 1,844,329 2,302,124 5,700,000

CO2 avoided from boiler conversion projects and PV installations (condominium/tertiary) - cumulative value tonnes - NEW 906 35,000

SMART CITIES Support the development of the smart city in the territory in which the Group operates, including through new business models that exploit the technological component (smart grids and big data)

New LED lighting points installed (totals provided for in the agreements signed with the municipalities) no. REVISED 232,368 275,950 417,000

Installed LED traffic lights no. 12,069 12,069 14,618 23,000

Charging points managed for electric vehicles no. 130 168 198 1,500

Smart City services activated - cumulative value no. - 7 40 250

Municipalities with Smart City services activated - cumulative value no. - 2 24 50

Parking spaces installed in smart parking - cumulative value no. - 711 2,580 4,000

Businesses served with new smart land services - cumulative value no. 1 2 10 20

Smart environmental bins - cumulative value no. 300 6,663 12,880 18,000

Vehicles monitored by GPS % of total - 81% 97% 100%

DISADVANTAGED GROUPSPromote beneficial tariffs or other solutions for users in difficulty (e.g. Banco dell’Energia)

Funds collected by Banco dell’Energia millions of euro/year - 1 1 1 (to 2020)

ICT - CYBERSECURITYInfrastructure develpoment and improvement projectsof IT platforms and application. Adoption of defence mechanisms and protection against logical, viral attacks

Achievement of ISO27001 certification progress - - NEW Achievement

Operators of Networks and Distrcit Heating BU equipped with digital tools for mobile work (WFM)

% of total target population - 51.5% 85% 100% (at 2020)


8

PEOPLE INNOVATION


2017 2018 2019 2024 OBJECTIVE

RESPONSIBLE PROCUREMENTDevelop initiatives aiming to spread the culture of health and safety at work amongst contractors and other suppliers. Develop Green Procurement policies

Incidence of sustainability criteria in the vendor rating process % indicators of total - 2% 2% 12%

Value of orders assigned to certified suppliers % of total 80% 80% 83% >80%

Qualified suppliers activated with order with sustainability requirements % of total 42% 54% 58% >50%

Inspection visits to sites number of visits/year minimum 727 1,682 2,453 2,500

HEALTH AND SAFETYConsolidate the training and prevention plan to reduce injuries and develop new initiatives for worker health and safety

Weighted injury index frequency index x severity index 26.1 20.7 15.3 14.0

MbOAdd sustainability objectives to the MbO sheets (correlation between Management remuneration and Sustainability KPIs)

Sustainability MbO weight % of total 5% 6% 7% 10%

Executives with Sustainability MbO % of total 85% 94% 95% 100% (at 2022)

TRAININGImplement training routes aimed at optimising and requalifying competences and professional development (including on matters such as sustainability, anti-corruption and human rights)

Employees involved in training on the Code of Ethics % of total 61% 77% 87% 100% (at 2022)

Average level of approval of training Scale 1-7 6 6 6 > than 5

CHANGE MANAGEMENTDevelop change management projects to improve the organisational culture

Employees involved in at least one change management project % of total clerical 100% 100% 100% 100%/year

(employees)

Young Talent employees involved in engagement and retention initiatives % of total - 100% 100% 100%/year

INTERNAL ENGAGEMENTDevelop a systematic listening system to employees, promoting dialogue and collaboration

Employees involved in listening surveys % of total clerical 100% 100% 100% 100%/year

WELFARE, DIVERSITY AND EQUAL OPPORTUNITIESDevelop innovative welfare policies, also in connection with the promotion of gender equality, and optimise competences through a generational bridge that allows for the transfer of knowledge and experience between the junior and senior populations

Women in positions of responsibility % of total

responsible employees

REVISED 20% 21% 25%

Employees involved in welfare initiatives % of total 38% 90% 100% 100% (at 2020)

Involvement of disabled employees in the plan to enhance their skills

% disabled employees Group - - NEW 50%

Definition for all roles, of levels, expected technical skills by level and related correlation to people % of total mapped - - NEW 100% (at 2021)

Employees involved in Smart Working % of total clerical 5% 18% 18% 25%

TRANSPARENCY AND STAKEHOLDER ENGAGEMENTDevelop integrated reporting and an adequate information system for planning and control. Develop external stakeholder engagement activities, strengthening the relationship with the territory

Territories with Territorial Sustainability Reports prepared no. 6 7 8 8 (to 2020)

Workshops realized - forumAscolto - second cumulative cycle period 20-24 no. - - NEW 6

EDUCATIONConsolidate and, where possible, improve the environmental education and promote the awareness of risks associated with climate change in the public opinion

Stakeholders involved in Environmental Education initiatives and plant visits no. REVISED 63,300 70,755 80,000



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


9

PEOPLE INNOVATION


2017 2018 2019 2024 OBJECTIVE

RESPONSIBLE PROCUREMENTDevelop initiatives aiming to spread the culture of health and safety at work amongst contractors and other suppliers. Develop Green Procurement policies

Incidence of sustainability criteria in the vendor rating process % indicators of total - 2% 2% 12%

Value of orders assigned to certified suppliers % of total 80% 80% 83% >80%

Qualified suppliers activated with order with sustainability requirements % of total 42% 54% 58% >50%

Inspection visits to sites number of visits/year minimum 727 1,682 2,453 2,500

HEALTH AND SAFETYConsolidate the training and prevention plan to reduce injuries and develop new initiatives for worker health and safety

Weighted injury index frequency index x severity index 26.1 20.7 15.3 14.0

MbOAdd sustainability objectives to the MbO sheets (correlation between Management remuneration and Sustainability KPIs)

Sustainability MbO weight % of total 5% 6% 7% 10%

Executives with Sustainability MbO % of total 85% 94% 95% 100% (at 2022)

TRAININGImplement training routes aimed at optimising and requalifying competences and professional development (including on matters such as sustainability, anti-corruption and human rights)

Employees involved in training on the Code of Ethics % of total 61% 77% 87% 100% (at 2022)

Average level of approval of training Scale 1-7 6 6 6 > than 5

CHANGE MANAGEMENTDevelop change management projects to improve the organisational culture

Employees involved in at least one change management project % of total clerical 100% 100% 100% 100%/year

(employees)

Young Talent employees involved in engagement and retention initiatives % of total - 100% 100% 100%/year

INTERNAL ENGAGEMENTDevelop a systematic listening system to employees, promoting dialogue and collaboration

Employees involved in listening surveys % of total clerical 100% 100% 100% 100%/year

WELFARE, DIVERSITY AND EQUAL OPPORTUNITIESDevelop innovative welfare policies, also in connection with the promotion of gender equality, and optimise competences through a generational bridge that allows for the transfer of knowledge and experience between the junior and senior populations

Women in positions of responsibility % of total

responsible employees

REVISED 20% 21% 25%

Employees involved in welfare initiatives % of total 38% 90% 100% 100% (at 2020)

Involvement of disabled employees in the plan to enhance their skills

% disabled employees Group - - NEW 50%

Definition for all roles, of levels, expected technical skills by level and related correlation to people % of total mapped - - NEW 100% (at 2021)

Employees involved in Smart Working % of total clerical 5% 18% 18% 25%

TRANSPARENCY AND STAKEHOLDER ENGAGEMENTDevelop integrated reporting and an adequate information system for planning and control. Develop external stakeholder engagement activities, strengthening the relationship with the territory

Territories with Territorial Sustainability Reports prepared no. 6 7 8 8 (to 2020)

Workshops realized - forumAscolto - second cumulative cycle period 20-24 no. - - NEW 6

EDUCATIONConsolidate and, where possible, improve the environmental education and promote the awareness of risks associated with climate change in the public opinion

Stakeholders involved in Environmental Education initiatives and plant visits no. REVISED 63,300 70,755 80,000


10

Stakeholder engagement and materiality analysisFigure 1_Stakeholder engagement initiatives activated in 2019

STAKEHOLDERS INVOLVED

MODE OF COMMUNICATION

AND INVOLVEMENT

ISSUES ADDRESSED DURING ENGAGEMENT ACTIVITIES, IDENTIFIED BY BU

Consumer Associations

• Meetings (physical, call and Web)

• Conventions/press conferences/events

• Work groups/committees

Environment BU• New waste-to-energy plant• Meetings on project to use energy from the Acerra waste-to-energy

plant for pumping groundwater• In-depth study requested by Codacons on municipal sanitation services

managed by Amsa• Possible synergies between A2A's school project and the associations'

projectsNetworks and District Heating BU• Termination of billing of divisional meters by A2A Ciclo Idrico in the

Municipality of Brescia and collection of any proposals to alleviate the transition phase

• Periodic meeting with the Joint Control Body of the ADR A2A Body• Presentation of the agreement on information activities relating to the

two hourly tariff for district heatingGeneration and Trading BU• Reconversion of the Monfalcone plantMarket BU• 2.0 electric meters project presentationCorporate BU• Possible synergies of the Group with the activities of the associations• Banco dell'energia (Energy bank)• Possible contributions for displaced persons in Via Palmieri (Milan)• Presentation of the A2A Group's activities• Projects at the Acerra waste-to-energy plant• Sustainability round table within Expo Consumers• Meetings with consumer associations for the extension of joint

conciliations to all sectors managed• Coordination of training courses for joint conciliators

Environmental Associations

• Meetings (physical, telephone and Web)


• Plant tours

Environment BU• Reconversion of the San Filippo del Mela plant• Cavaglià plant presentation • Round table intervention on plastics• New waste-to-energy plant • Capacity market strategies• Plant tours• Participation in conferences and initiatives organized by the

associations (energy efficiency, Sicilia Munnizza Free 2019, Green new Deal conference, Forum Rifiuti Legambiente, Ecoforum rifiuti Lombardia)

Networks and District Heating BU• Lamarmora decarbonization plant• Plant visits• District heating and energy efficiency of buildingsGeneration and Trading BU• Reconversion of the Monfalcone plant• Reconversion of the Brindisi plant• Decarbonization • Capacity market systemMarket BU• Possible synergies on the development of agrivoltaics in the Lombardy

RegionCorporate BU • Meetings with new association summits



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


11



AND INVOLVEMENT


Trade/professional associations



• Work groups/Committees

• Plant tours

Environment BU• Circular economy and air quality • Plant visitsNetworks and District Heating BU• Termination of billing of divisional meters by A2A Ciclo Idrico in the

Municipality of Brescia and collection of any proposals to alleviate the transition phase

• Development and operation of district heating in Bergamo and Milan• Organization of the T-LAB course on the management of district

heating plants and the technical design of plants carried out with ANCE, Ordine degli Ingegneri della Lombardia (Order of Engineers of Lombardy), Politecnico di Milano and with the help of the Energy Counter of the Municipality of Milan

• Plant visitsSMART CITIES• Development of Open Fiber/A2A Smart Cityworks• Booklet Smart City PresentationMarket BU• Electric mobility Corporate BU• Development of circular economy projects• Divisional meters• Meetings to support initiatives• Plant visits

Civic and spontaneous committees


Environment BU• Presentation of the FORSU plant of Bedizzole• Clarifications on Silla2 waste-to-energy emissions• Presentation of the new Bergamo waste-to-energy plant manager• Brescia decarbonization planMarket BU• Meeting for agreements on issues of complex debt situationsGeneration and Trading BU• Meeting on hydroelectric issuesCorporate BU• Meeting with the Committee for the rationalization of power lines

Customers


• Work groups/committee

• Studies/Surveys• Plant visits

Networks and District Heating BU• Enjoyable and informative events dedicated to customers on innovative

district heating services• Customer satisfaction of LGH district heating customersMarket BU• Events promoting activities with large customers• Meetings with various associations for sponsorships• Plant visits• Customer satisfaction measurement compared with other market

operators (Cerved Energy and Gas Monitor)• “Ascolta un amico” communication campaign survey• Internal survey on the online contract subscription web format • Annual customer satisfaction survey of A2A Energia and Linea Più Free

Market customers conducted by CFI Group• Large Customers event satisfaction survey• Direct Channels event satisfaction survey

Suppliers



• Plant visits

Environment BU• Promotion of the circular economyMarket BU• Training initiatives for the A2A Energia sales network• Round table intervention on electric mobilityCorporate BU• Round table on energy transition• Participation in the round table on smart cities• Meetings on coal phase out


12



AND INVOLVEMENT


Regulators




• Plant visits

Environment BU• First guidelines for the regulation of municipal sanitation services• Plant visitsNetworks and District Heating BU• Awareness raising on district heating issues • Technical meetings and discussions in Arera for PMS2, resilience, riser

columns and gas metering• UNI CEI 11352 certification of Linea Green as ESCO and extension of

ISO 9001/ISO 14001/BS OHSAS 18001 certification to new business units

• Presentation of the commissioning plan for the 2G smart metering system (PMS2)

Generation and Trading BU• Reform of the electricity market and launch of pilot projects for the

provision of dispatching services for the system• External positioning on the issue of capacity market definitionMarket BU• Sustainable mobility Corporate BU • Meeting with Utilitalia on ADR body

Shareholders/Investors



Corporate BU • Updates on strategic options• Presentation of fiscal year 2018 Results and 2019-2023 Strategic Plan• Presentation of first quarter 2019 Results• Presentation of first half 2019 Results• Presentation of third quarter 2019 Results• Presentation of Sustainability in A2A - Stakeholder engagement on

ESG issues

Institutions





Environment BU• New waste-to-energy plant • Meetings on waste-to-energy plants in Acerra, Silla2 and TU Brescia• Meetings Corteolona plant• Promotion of the circular economy• TU Brescia Observatory• Air Observatory• Water Observatory• Presentation of a study by the University of Brescia on air quality in

the Po Valley (health part)• Presentation of the ISPRA study on energy and waste, the need to

adapt plants in the disposal sector and the contribution of waste-to-energy to the objectives of circularity

• Waste management in Apulia• Waste management in Lombardy• Waste collection in Milan• Industrial waste management in the Robassomero plant• Regional hearings Lombardy (Environment and Civil Protection

Commission and special Anti-Mafia, Anti-corruption, transparency and legality)

• Hearing in the Third Special Commission Terra dei Fuochi (Campania)• Lombardy regional hearings on the waste management cycle• Plant visits• Circular School, advocacy initiative on institutions (Lombard and

national) on circular economy issues• LaboRAEE: WEEE recovery and prison employment project, supported

by Amsa• Preparation of a new draft charter of the quality of Amsa's

environmental services• Institutional meetings with new municipalities for the environmental

hygiene service



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


13



AND INVOLVEMENT


Institutions


• Conventions, press conferences, events



Networks and District Heating BU• Awareness raising activities regarding the so-called public water reform

through comparisons and sharing of technical-economic data• Presentation of Unareti station decoration in Brescia• Meetings with institutions on water cycle issues in Brescia and province• Meeting with the municipality of Cologno Monzese for information on

the change of district heating network operator A2A/ITALGAS• New infrastructure works in Milan and province• Joint Commission to present the Merezzate project and the community

engagement process as part of the REDO Milan intervention• Presentation of the massive meter replacement plan for Brescia and

Milan• UNARETI auditions: Milan gas tender blackout and cancellation• Meetings on water issuesSMART CITIES• Meetings with several municipalities throughout the country for

possible smart city projects • Meetings on smart city issuesGeneration and Trading BU• Reconversion of the Monfalcone plant• Reconversion of the San Filippo del Mela plant• Hydroelectric concessions• Reconversion Brindisi plant• Technical Table Phase Out Coal MISE• Hearing of the region and municipality of Monfalcone on the

reconversion of the plantMarket BU• Electric mobility• Presentation of the electric vehicle charging network of Bergamo • Presentation of the e-moving project in the municipalities of Concesio,

Padenghe sul Garda, Montichiari, Cellatica, GussagoCorporate BUMeetings with the representatives of the institutions in the territories in which the Group operates to listen to needs, report on activities and evaluate future projects:• Participation in Giuffrè Villani social workshop on strategies and

involvement of A2A for a transversal project involving the Milan suburbs• Meetings on energy issues• Meetings on local development (Valtellina, FVG and Calabria)• Anti-Mafia hearing municipality of Milan• Hearing on climate change municipality of Milan• Territorial table infrastructure and health care• Regional table for the use of water resources in agriculture• Meetings to support initiatives• Presentation of the report of the Acqua Bene Comune Observatory• Presentation of IPSOS research on the perception of A2A and its

services/plants in Brescia• Aprica customer satisfaction presentation to administrations• Presentation of new plant managers• Meetings by Circular School initiative• Presentation on the ERDF Operational Programme 2014 - 2020• Board Questions• Group and A2A Plan presentation• Distribution of aluminium bottles to first-grade secondary schools

aimed at raising awareness among children about the reduction of plastic waste production and the use of tap water


14



AND INVOLVEMENT


Local community/citizens


• Conventions, press conferences, events



Environment BU• Qualitative survey to test the draft of the new guide to the separate

collection of Amsa to be distributed to all citizens• Customer satisfaction to assess the satisfaction of the environmental

hygiene services offered by Amsa in the Municipality of Milan and in the surrounding municipalities and by Aprica in the municipalities of Gardone, Como and Brescia

• New separate collection service in the municipalities of Rapallo, Bedizzole, Urago D'Oglio, Cavriana

• Didactic workshop exhibition "The game of 4R - Reduction, Reuse, Recycling, Recovery"

• Presentation of the results achieved in separate waste collection by Linea Gestioni and possible future scenarios

• Illustration of the main regulatory changes in the definition of the environmental hygiene tax/tariff in light of the recent assignment of environmental responsibilities to ARERA

• Promotion of composting in the municipality of Gottolengo• Meetings and lessons on proper separate waste collection with asylum

seekers hosted at reception facilities in Milan• Meetings with condominium tutors to improve separate collection in

Milan • Meetings with citizens at the Mobile Office• Meetings with officials and citizens residing in ALER and MM houses on

the issue of separate collection to raise awareness among the resident population on situations of degradation and social integration

• Participation in Giuffrè Villani social workshop on strategies and involvement of A2A for a transversal project involving the Milanese suburbs

Networks and District Heating BU• Natur.Acqua route set up at Ambiente Parco - Science Center subsidized

by A2A and Fondazione ASM• City meeting for the presentation of the European project "TEMPO"

on district heating and collection of adhesions for experimentation in homes

• Opening to citizens of the source of Mompiano and the purifier of Verziano on the occasion of the World Water Open Day Lamarmora, with guided tours and workshops for citizens and second-grade secondary schools in the presence of institutions, Basket Leonessa and inauguration of the graffiti with photocatalytic paints

Generation and Trading BU• Opening to the public of the Monfalcone plant, as part of Open Factory• Open plants: Somplago hydroelectric plantMarket BU• A2A project in the suburbs: AEN garrison of 25 suburban squares with

free shows and entertainment on weekendsCorporate BU• A2A reputation survey in Brescia• Interventions in university courses and masters• Career day, simulated interviews and assessments in universities• Hackathon ICT• Meetings to support initiatives• Interventions at round tables and conferences

Media



Networks and District Heating BU• Illustration of divisional meter regulationsMarket BU• Presentation of A2A Energia - BTL agreement to local newspapers and

broadcasters



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


15



AND INVOLVEMENT


Schools



• Plant visits

Environment BU• Environmental education and sustainability interventions in the cities

of Bergamo, Brescia, Mantua, Rapallo and Zoagli• Presentation of educational projects • Plant visitsNetworks and District Heating BU• Presentation of the project work of the 10 students of the LGH

Alternanza Scuola Lavoro project• Action 2 Air aimed at second-grade secondary schoolsCorporate BU • Distribution of aluminium bottles to first grade secondary schools

aimed at raising awareness among children about the reduction of plastic waste production and the use of tap water

• Participation in STEM - Science Technology Engineering Mathematics in the municipality of Milan

• Didactic workshop exhibition "The game of 4R - Reduction, Reuse, Recycling, Recovery"

• AmbienteaScuola Campaign - Educational meetings with groups composed of school headmasters, teachers, ATA staff, student representatives on separate collection; creative contest "Cestini in cerca d'autore" (Bins in search of artists) and creation of new educational video content published on the public platform edutv.a2a.eu

• Educational meetings and workshops on the circular economy and reuse, less waste production for schools from childcare to first-grade secondary schools; creative contests "Ricicla con arte" (Recycle with art) and "Missione plastica zero" (Zero plastic mission) in Como

• Educational meetings and workshops on "plastic free", circular economy and reuse for primary and first-grade secondary schools in Bergamo

• Educational workshops aimed at primary and secondary schools in some areas affected by energy production plants (Carnia, Monfalcone, Chivasso, Valchiavenna and Valtellina, Cassano d'Adda) on the topic of QUALITY EDUCATION aimed at promoting the national merit contest - Missione Terra - Global Goal Protocol;

• Workshops for children on sustainability as part of the event "The industrial value of sustainability" in Milan

• Participation in the E-Mob event in Milan with training session on sustainable development issues

• Webinar for teachers on EDU TV on different topics: artificial intelligence, sustainability and 2030 Agenda, gas networks, bills

• A2A Alternanza Scuola-Lavoro Project, with interventions on sustainability

• Inspirational Talks of A2A managers in second-grade secondary schools• Interventions in schools on technical issues• Teacher workshops for presentation of educational projects aimed at

schools• Meetings with pupils participating in the "Our energy for the

environment" broadcast, contest management and award ceremony• Plant visits


16



AND INVOLVEMENT


Employees




• Focus Group• Studies/Surveys• Plant visits

Environment BU• Illustration of the main regulatory issues in the waste and circular

economy sectors, in light of the recent assignment of environmental responsibilities to ARERA

• Biofor acquisition and integration in Linea Ambiente• Solidarity agreement Linea Ambiente GrottaglieNetworks and District Heating BU• Evolution of the BU, sharing business strategies, system and network

development projects, security, ideas and suggestions to implement innovation strategies

• LD Reti remote control reorganization and reallocation of resourcesGeneration and Trading BU• Analysis of the role of PPA (Power Purchase Agreements) for the

development of renewable capacity and organization of an internal Regulatory Breakfast with the different business functions involved

Market BU• Contact Center events Milan and BresciaCorporate BU• Young Talent: thematic webinars, surveys and meetings on

development paths, annual meeting at East End Studios, focus group for the definition of new engagement levers for this target, internal referral project

• Online discussion community (Young Talent, Runner, supplier services, sustainability and operational excellence services)

• Survey Digital DNA• Induction A2A for new recruits under 35 years of age who are

professional graduates of the Group • Online survey and engagement campaign to support measurement

of the degree of evolution of the Group's managerial culture in various areas: A2A's reputation, alignment with the ABC Management Model, the effectiveness of internal communication tools, A2A's sustainability policy and our Group's Environment, Health and Safety policy

• Team building CODIR• WE HR 2019: periodic discussion meeting between A2A's HR

department employees • Awareness-raising of employer lines with an in-depth examination

of the issue of delegation of responsibilities for environmental and occupational safety aspects

• LiHS Programme • Welfare Day• Smart working survey • LGH e Lode (LGH cum laude) prize• GEA Project: 3 meetings and the first inspirational talks in second-grade

secondary schools• Internal survey to define the working methods of the company clerical

population • 4 events AD Incontra• Tech Camp "Robotizziamoci" dedicated to the children of employees to

bring our young people closer to scientific and technological subjects• Satisfaction survey regarding Press Centre, Protocol, Concierge and

Security, Company Fleets, Facility services• Workshop for the collection of feedback and proposals related to the

re-design of the user experience of the Intranet ina2a • A2A Corporate Car Sharing (presentation event and infopoint)• Working groups for the analysis of informal relationships within the

Group• Information meetings with Cremona area employees for the

changeover from paper to electronic tickets• Meetings with employees to illustrate the procedures for secondment/

dismissal to employees involved in the integration with A2A

Unions • Meetings (physical, telephone and Web)

Corporate BU (whole Group)• Trade union agreement for the consolidation of the use of Smart

Working in LGH and extension to LD Reti and Linea Ambiente• Trade union agreement on video surveillance and geolocation• Creation of the new supplementary health care system for the

approximately 5,000 workers in the energy area, active as of January 1, 2020

• A2A and LGH Corporate integration path: signing of an agreement relating to the Corporate integration plan of the two companies and change in the generation mix



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


17



AND INVOLVEMENT


Multi-stakeholders





Environment BU• Meetings on the subject of waste regulation aimed at defining scientific

contributions from the CESISP Study Centre - Bicocca University• Stand at Ecomondo• Presentation of critical issues related to "End-of-waste" from the point

of view of the recovery industry• Meeting with the representatives of Seriate's large-scale retailers and

restaurateurs to share with them actions for the reduction of waste and the fight against food waste

• Vegetable oil project at supermarkets in Milan• WEEE project in Milan• Project "Un sacco etnico" with ethnic restaurants in Milan• Awareness-raising on air quality issues and the impact of the

Brescia TU• Presentation of the study by the University of Brescia on air quality in

the Po Valley and the main causes of air pollution • Presentation of Aprica customer satisfaction for services in the

municipality of Bergamo • Interventions at round tables and conferences• Plant visitsNetworks and District Heating BU• Participation and interventions at district heating conferences• Enjoyable and informative events organized on district heating• Presentation to the territory of the industrial agreement for heat

recovery and development in the Bergamo area• Meeting on the 2G electricity meters project• Meetings on divisional meters• Promotion and organization by Linea Green of the conference Energy

Efficiency in the Agro-food Sector• Inauguration of a new cycle path on the top of the embankment of the

Mella river, which was a prodromal step in the construction of the new Valtrompia purifier

• Presentation of the relamping project of 3 schools of the city of Brescia• Press conference of decoration electrical stations in Brescia • Presentation of the Unareti electricity meter replacement project on

Brescia and province• Plant visitsSMART CITIES• Press conference to present the fiber optic cabling plan within the Open

Fiber project• Inauguration of digital islands Bergamo• Press conference inauguration underpass Villaggio Violino• Meeting A2A Smart City - MM for possible synergies on ALER housesGeneration and Trading BU• Table of analysis and discussion on the issues of self-consumption,

energy communities, and innovative energy configurations introduced by the Clean Energy Package

• Meetings on the reconversion of the San Filippo del Mela power plant and presentation of the FORSU project

• Hydroelectric concessions• Reconversion of the Monfalcone plantMarket BU• Meeting with the Municipality of Milan and car sharing companies for

the development of mobility projects • Round table intervention on the energy market• Round table intervention on electric mobility in Cremona• Meetings with companies for possible synergies on electric mobility• Participation in the Permanent Table on overcoming price protections

in the sale of electricity and natural gas organized by i-Com• Workshop with the Municipality of Milan on electric mobility• Coordination of activities on courses for ADR joint conciliators• Participation in E-Mob• Press conference for the presentation of the new LED lighting of the

city walls of Bergamo Alta• Presentation of the memorandum of understanding between the

Municipality of Bergamo and A2A Energy Solutions for the efficiency of buildings


18



AND INVOLVEMENT


Multi-stakeholders





Corporate BU• A2A and LGH materiality analysis• Analysis and discussion table on PNIEC - National Integrated Energy

and Climate Plan• Meetings with member municipalities for the illustration of the

interventions within the Multi-utility of the North project• Federconsumatori national conference and dedicated meetings on

possible synergies with the Group• Presentation of Banco dell’energia (Energy Bank) at the conference on

energy poverty• Plant visits• A2A Action: digital treasure hunt in Brescia and prize-giving event• Presentation of graffiti made by students at the end of the Action2Air

project• Presentation of the Territorial Sustainability Report of Bergamo,

Brescia, FVG (Conference), Valtellina, Piedmont (CreiAMO Piemonte), Milan

• Conference laying the foundation stone new multi-purpose building Lamarmora headquarters (smart space)

• Meeting to support events of local associations• A2A civil protection association voluntary meetings and conventions• Hearings of the Lombardy Region's Anti-Mafia commission on illegal

waste storage and trafficking• Hearings in the Verification and Control Commission Participating

Entities • Presentation Research grant with the University of Udine • Regional table for the use of water resources in agriculture• Table to overcome price protection• Initial meetings• Meetings on regarding Valtellina Parks and Silani Lakes



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


19

Figure 2_Material aspects and scope of application

MATERIAL THEMES FOR A2A

GRI CORRESPONDENT ASPECTS

SCOPE/INTERNAL

BOUNDARY

SCOPE/EXTERNAL BOUNDARY

Ethical conduct of business

• Anti-corruption (GRI 205)• Anti-competitive behaviour (GRI 206)• Environmental compliance (GRI 307)• Socioeconomic compliance (GRI 419)

Group -

Sustainability elements in corporate governance

• Non discrimination (GRI 406) Group -

Risk management and sustainability opportunities

• Socioeconomic compliance (GRI 419)• Anti-corruption (GRI 205)• Research and development (EU Supplement)

GroupCommunity/Customers/Suppliers*

Respect and promotion of human rights in the Group value chain

Freedom of association and collective bargaining (GRI 407)Human rights assessment (GRI 412)

Group Suppliers*

Creation of sustainable economic value

Economic performance (GRI 201)Indirect economic impacts (GRI 203) Group Shareholders/

InstitutionsInnovative development and efficient management of Group infrastructures

Energy (GRI 302)Efficient management (EU Supplement) Group -

Circular economy and responsible use of resources

Materials (GRI 301)Effluents and waste (GRI 306)

Environment BUNetworks and District Heating BUGeneration and Trading BU

Community

Efficient water use Water and effluents (GRI 303)Effluents and waste (GRI 306) Group Suppliers*

Fight against climate change and containment of atmospheric emissions

Energy (GRI 302)Emissions (GRI 305) Group Suppliers*/

Customers

Protection of biodiversity

Environmental compliance (GRI 307)Biodiversity (GRI 304) Group Community

Quality of distributed water Environmental compliance (GRI 307)

Networks and District Heating BU

Community/Customers

Sustainable mobilityEnergy (GRI 302)Emissions (GRI 305)Efficient management (EU Supplement)

Group Community/Customers

Protection of health and safety at work Occupational health and safety (GRI 403) Group Contractors

Development of human capital

Employment (GRI 401)Training and education (GRI 404) Group -

Diversity and company welfare Diversity and equal opportunities (GRI 405) Group -

Technological innovation and smart cities

Research and development (EU Supplement)Demand side management (EU Supplement) Group Institutions

Responsibility and Safety in the provision of services and products

Consumer health and safety (GRI 416)Marketing and labeling (GRI 417)Consumer privacy (GRI 418)

Market BUNetworks and District Heating BU

Institutions/Communities/Customers

Quality and innovation in the provision of services and products

Consumer privacy (GRI 418)Service accessibility (EU Supplement)Demand side management (EU Supplement)

Market BUNetworks and District Heating BU

Institutions/Communities/Customers

Relationship with Group stakeholders

Local community (GRI 413)Public policy (GRI 415) Group -

Active local and environmental education

Local community (GRI 413) Group -

Responsible management of the supply chain

Procurement practices (GRI 204)Supplier environmental assessment (GRI 308)Supplier social assessment (GRI 414)

Group Suppliers*

* Limited scope: reporting relates solely to direct suppliers and not to level-two suppliers.

Financial capital

20

Financial capitalFigure 3_Statement for calculating the global added value - millions of euro [GRI 201 - 1_4]

2017 2018 2019

+A) Production value 5,796 6,494 7,324

Revenue from sales and services (- revenue adjustments) 5,590 6,270 7,121

Change in inventory of products in progress, semi-finished products and finished products 0 0 0

Change in contract work in progress 0 1 1

Other revenue and income 206 223 202

Government grants 0 0 0

- B) Intermediate production costs 4,000 4,740 5,397

Raw materials and consumables consumption 296 344 431

Energy and fuel consumption 2,554 3,038 3,607

Costs for services 849 985 1,150

Other operating expenses 106 93 74

Accruals to bad debt provision - current receivables 35 25 15

Provisions for risks 10 -5 21

Other write-downs of fixed assets 34 160 9

Other operating expenses 135 136 124

Material own work capitalised -19 -36 -34

GROSS CORE VALUE ADDED 1,796 1,754 1,927

- C) Financial balance 4 4 2

Financial income 19 16 16

Financial expenses other than interest on loans -20 -16 -18

Unrealised gains and losses on equity investments in associates 5 4 4

-D) Auxiliary and extraordinary components -145 56 -2

+/- auxiliary balance -145 42 -6

+/- extraordinary balance 0 14 4

GROSS GLOBAL VALUE ADDED 1,655 1,814 1,927

- Depreciation and amortisation 410 463 502

NET GLOBAL VALUE ADDED 1,245 1,351 1,425



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


21

Figure 4_Statement for distributing the gross global added value - millions of euro [GRI 201-1_4]

2017 2018 2019

REMUNERATION OF PERSONNEL 475 492 521

Wages and salaries 420 428 448

Employees’ leaving entitlement (TFR) 29 31 31

Other costs 26 33 42

REMUNERATION OF EQUITY CAPITAL 159 190 222

Profits distributed 153 180 218

Net Income attributable to minority Interests 6 10 4

REMUNERATION OF DEBT CAPITAL 138 116 112

TRANSFERS TO THE GOVERNMENT 268 322 332

Direct taxes for the Treasury 106 148 152

Other taxes and duties for the Treasury 2 1 1

Social security charges 160 173 179

TRANSFERS TO THE LOCAL COMMUNITY 65 67 67

Direct taxes for local authorities 26 30 30

Local taxes and duties 33 33 32

Sponsorships 1 1 2

Contributions to AEM and ASM foundations, aid, donations and charity 5 3 3

COMPANY REMUNERATION 550 627 673

Reserves 140 164 502

Amortization 410 463 171

GROSS GLOBAL VALUE ADDED 1,655 1,814 1,927

Figure 5_Gross operating margin by business unit - millions of euro

2017 2018 2019

Generation and Trading 356 370 301

Market 216 206 229

Environment 261 268 271

Networks and District Heating 391 410 461

Smart City 7 11 11

Corporate -30 -34 -36

International -2 0 -3

Total 1,199 1,231 1,234

Financial capital

22

Figure 6_Balance Sheet - millions of euro

2017 2018 2019

Net fixed assets 5,780 6,131 6,470

Working capital 235 302 335

Assets/liabilities held for sale 224 112 -

Net capital employed 6,239 6,545 6,805

Shareholders’ equity 3,013 3,523 3,651

- Attributable to the Group 2,878 3,135 3,289

- Attributable to minorities 135 388 362

Net debt 3,226 3,022 3,154

Total sources 6,239 6,545 6,805

Gross debt 3,961 3,692 3,620

Figure 7_Main balance sheet indicators

2017 2018 2019

Turnover by permanent worker (millions of euro) 0.51 0.54 0.6

EBITDA per permanent worker (millions of euro) 0.11 0.1 0.1

Average number of permanent workers 11,280 12,136 12,198

Figure 8_CAPEX (capital expenses) - millions of euro

2017 2018 2019

Generation and Trading 64 57 88

Market 11 21 32

Environment 107 105 96

Networks and District Heating 229 275 347

Smart City 10 11 16

International 4 0 0

Corporate 29 31 48

Total 454 500 627

Figure 9_Share performance

2017 2018 2019

Average capitalisation (millions of euro) 4,455 4,763 5,011

Capitalisation at December 31 (millions of euro) 4,831 4,926 5,238

Average volumes 9,729,351 9,807,945 9,593,175

Average share price* (euro per share) 1.422 1.520 1.599

Maximum share price* (euro per share) 1.635 1.687 1.805

Minimum share price* (euro per share) 1.232 1.392 1.434

* Euro per share (source: Bloomberg)



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


23

Manufacturing capital Energy production

Figure 10_Average availability factor for all plants [G4 - EU30]

A2A 2017 2018 2019

Traditional coal-powered 81% 80% 91.4%

Traditional heavy fuel oil 75% 80% 79.8%

Combined cycle natural gas 82% 87% 86.8%

Run-of-the river hydroelectric 86% 86% 86.3%

Basin hydroelectric 89% 85% 89.8%

Storage hydroelectric 85% 87% 71.4%

LGH 2017 2018 2019

Run-of-the river hydroelectric 90% 90% 85%

Figure 11_Net electricity produced divided up according to plant type and source – GWh [G4 - EU2]

2017 2018 2019

Generation Business Unit

Thermoelectric plants* 11,442 10,671 10,910

Hydroelectric plants 3,464 4,464 4,534

Photovoltaic plants (including energy consumed) 12 63 122

Networks and District Heating Business Unit Cogeneration plants 277 285 286

Environment Business Unit

Waste-to-energy plants (including biogas) and natural gas boilers** 1,141 1,183 1,192

Total*** 16,336 16,666 17,044

* Does not include the production of the Scandale Plant, in line with the data of the natural capital and Sustainability Plan.

** The 2017 figure has been updated by separating the production of the Acerra waste-to-energy plant, equal to 631 GWh.

*** For the reasons set out above, total production in 2017 has changed

Figure 12_Net thermal energy produced divided up according to plant type and source – GWh

2017 2018 2019

Environment Business Unit

Waste-to-energy plants (including biogas) and natural gas boilers 1,362 1,403 1,478

Networks and District Heating Business Unit

Cogeneration plants, natural gas thermal, heat pumps, biogas, solar panels

1,324 1,213 1,140

Generation Business Unit Heat recovery 40 33 36

Total 2,726 2,649 2,654


24

Electricity distribution

Figure 13_Extension of electricity distribution service [G4 - EU4]

2017 2018 2019

Km of electricity network 14,919 15,014 15,359

of which underground cable 12,745 12,976 13,362

Figure 14_Extension of the gas distribution service

2017 2018 2019

Km of natural gas network 11,183 11,193 11,240

Figure 15_Electricity, thermal energy and gas released to the network

2017 2018 2019

Electricity distributed (GWh) 11,590 11,747 11,573

Distributed heating and cooling energy (GWh) 3,133 3,130 3,079

Distributed natural gas (Mm3) 2,480 2,425 2,356

Transported natural gas (Mm3) 370 372 350

Figure 16_Public lighting*

2017 2018 2019

Light points (no.) 213,817 232,368 275,950

* New Indicator that refers to the total light points with tenders already signed, unlike the previous years where only "pro-quota" light points were considered.



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


25

Integrated water cycle

Figure 17_Procurement and distribution

2017 2018 2019

Wells (no.) 276 190 190

Springs (no.) 331 275 255

Drinking water plants (no.) 94 122 123

Total network length (km) 5,305 4,010 4,019

Water delivered to the user and accounted for (Mm3) 69 54 54

Water extracted (Mm3) 124 94 93

Network losses and water not booked (Mm3) 44 41 37

Figure 18_Collection and purification

2017 2018 2019

Sewers - network length (km) 2,551 2,567 2,569

Waste water treated (Mm3) 49 52 51

Purifiers (no.) 73 61 57

Waste management

Figure 19_Waste collected

2017 2018 2019

Tonnes 1,605,000 1,584,955 1,618,000

Figure 20_Waste processed by type of plant* - kt

2017 2018 2019

Waste-to-energy plants 1,676 1,790 1,806

Landfills 481 455 182

Bio-drying plants and production of RDF 541 545 539

Recovery of materials and processing 938 997 1,024

Total 3,636 3,787 3,551

* All incoming waste to the Group’s plants is considered. The 2019 portion of waste disposal, net of intermediation (489 kt) and elisions (-758 kt) is 3,282 kt. Waste treated in plants managed on behalf of third parties (Acerra waste-to-energy plant and Caivano CSS plant) is not included.


26

Figure 21_Intermediated waste

2017 2018 2019

Tonnes 133,082 216,374 220,368

District heating and heat

Figure 22_Thermal energy sold (GWh)

2017 2018 2019

Heating / cooling energy 2,682 2,620 2,564

Smart City

Figure23_Smart City Services - Smart Land

2017 2018 2019

Number of municipalities served - 2 24

Number of services offered - 7 40

Video cameras (no.) 1,999 2,013 2,174

SOS bollards (no.) 250 250 250

Monitoring stations (no.) 51 51 51

Digital islands (no.) 29 29 29

Wi-fi antennas (no.) 1,140 1,198 1,198

Remote natural gas reading concentrators (no.) 540 555 1,210

Environmental sensors installed (no.) 100 118 148

Smart bins installed 300 6,663 12,880

Smart land sensors - 62 125

Smart parking sensors - 711 2,580

ZTL gates - 9 9

Variable message panels + park - 15 15

Museum sites

Sites 27 31 31

Video cameras 1,023 1,463 1,463

Break-in sensors 3,299 5,025 5,025

Fire sensors 2,622 3,373 3,373

IoT sensors (laser, protection, flooding) - 216 216

Evac speakers - 33 33

A2A offices:

Offices 159 159 159

Break-in sensors 1,908 2,754 2,754

Video cameras 1,376 1,862 1,862

Presence/access readers 789 841 841



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


27

Natural capitalFigure 24_Percentages of electricity generated by type of source [G4-EU2]

2017 2018 2019

Renewable sources (hydraulic, renewable fraction of waste*, biogas, solar) 25% 31% 31%

Coal 13% 12% 6%

Natural gas 51% 49% 55%

Oil products 8% 4% 4%

Non-renewable fraction of waste 3% 4% 4%

* For non-hazardous waste, a renewable fraction of 51% was assumed (ref. Decree of the Ministry of Economic Development of December 18, 2008). Consequently, the non-renewable fraction was assumed to be 49%.

Figure 25_Energy Performance [GRI 302-3; G4 - EU11]

2017 2018 2019

Average yield of thermoelectric plants 44% 45% 47%

Yield of high-performance natural gas combined cycles 51% 51% 51%

Yield of multi-fuel plants 33% 32% 31%

Average yield of fossil fuel cogeneration plants 77% 77% 80%

Average electricity produced from 1 t waste (kWh/t) 778 754 759

Average thermal energy produced from 1 t waste (kWh/t) 816 780 823

Figure 26_Global impact indicators

2017 2018 2019

Total emissions of gases harmful to the ozone layer (KgR11eq) 0.1 1.0 0.4

Total acidifying emissions (tSO2eq) 3,910 3,409 2,927

Figure 27_Indicators of impact due to the purchase and use of fuels (Scope 3)

2017 2018 2019

Carbon footprint (tCO2eq/year) 1,031,979 933,332 853,467

Water footprint (thousands of m3 water) 28,583 20,597 20,383

Figure 28_Environmental sanctions [GRI 307-1]

2017* 2018** 2019

Number 8 18 25

Value (euro) 30,516 66,314 83,962

* The most significant sanctions relate to the biodrying plants of Villafalletto and the plant complex of Corteolona (13,000 euro each). All sanctions relate to infractions of authorisation measures or administrative imprecisions that did not result in any damages or concrete temporary or permanent danger to the environment.

** All sanctions relate to breaches of authorisation requirements or administrative inaccuracies.

Natural capital

28

Water stressed areas

Withdrawals in water stressed areas

Figure 29_Water withdrawal [GRI 303-3_5]

2017 2018 2019

Water withdrawn for process consumption (thousands of m3)

From aqueducts 38 30 37

From wells 279 254 246

From third parties - fresh water 37 24 47

From surface water body - salt/sea water 715 591 707

Total 1,069 899 1,037

Derived and returned water (thousands of m3)

From surface water body - fresh water for hydroelectric production 357,085 462,580 493,067

from surface water body - salt/sea water* 440,082 255,358 272,471

Total 797,166 717,938 765,538

Water withdrawn for distribution to water service users (thousands of m3)

n.a. n.a. 19,692

* Salt/sea water is defined as marine or salt water with a concentration of dissolved solids (measured as sodium chloride) >1,000 mg/l.

Effluents in water-stressed areas

Figure 30_Effluents, returned water and distributed drinking water A2A Group [GRI 303-4]

2017 2018 2019

Industrial waste water discharged (thousands of m3)

Discharged into sewers - - 0

Discharged into surface water body (fresh water) - - 0

Discharged into coastal waters/salt water channels* 668 673 736

Total 668 673 736

Water recovered (thousands of m3)

Recovered in the production cycle 675 680 827

% of total water withdrawn 63% 78% 80%

Water returned (thousands of m3)

Derived water - fresh water 357,085 462,580 493,067

Derived water - salt/sea water* 440,082 255,358 272,471

Total 797,167 717,938 765,538

Public water supplied to water service users (thousands of m3) n.a. n.a. 9,179


The areas with the greatest water stress are the Abruzzo, Calabria and Sicily Regions, and the areas of the Mountain Communities in the Province of Brescia.



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


29

Natural capital in the Environment BU

Resources and materials used

Figure 31_Resources used - Environment Business Unit [GRI 301-1; GRI 302-1_2;]

2017 2018 2019

Fuel (TJ)

Natural gas 656 694 724

Oil (heavy fuel oil and diesel) 67 71 66

Waste, biomass and CSS 19,317 21,095 21,035

Biogas (from landfills and treatment facilities) 631 484 428

Automotive fuels (TJ)

Petrol 9 7 6

Diesel 552 504 492

Methane 98 111 145

Electricity (GWh) 53 54 58

Chemical products and materials (t)

Mineral acids 1,305 1,565 1,642

Water additives/conditioners 263 260 360

Ammonia (solution) 5,722 6,196 5,002

Lime and solid neutralisers 32,124 33,152 32,176

Active carbon 1,293 1,422 1,566

Cement, sand an inert materials 216,722 188,808 219,165

Sodium chloride 1,704 283 280

Technical gases (nitrogen, C02, hydrogen, oxygen) 1,118 1,370 939

Sodium hydroxide (solution) 1,917 2,260 2,316

Methanol, solvents and other products 1,923 2,461 516

Oils and lubricants 140.72 100 126

Urea (solution) 2,032 1,704 2,138

Total chemical products 266,265 239,583 266,172

Withdrawals

Figure 32_Water withdrawal [GRI 303-3]

2017 2018 2019


Aqueduct 734 511 511

Well 3,004 3,160 3,134

Total 3,738 3,671 3,643

Natural capital

30

Water discharges

Figure 33_Effluents and returned water [GRI 303-4]

2017 2018 2019

Wastewaterindustrial discharged (thousands of m3)

In the sewer 491 503 535

In surface water body (fresh water) 1,115 919 1,333

Total 1,606 1,421 1,868

Recovered waters (thousands of m3)

Recovered in the production cycle 387 401 384


Returned (cooling) water (thousands of m3) In surface water body (fresh water) 703 713 764

Pollutant discharges into surface water (t)

BOD 27 20 20

COD 69 47 49

Waste

Figure 34_Special waste produced [GRI 306-2_4]

2017 2018 2019

Special non-hazardous (t) 515,353 529,422 490,684

Special hazardous (t) 104,612 111,751 115,267

Total special (t) 619,965 641,173 605,951

Sent for recovery (% of total) 52% 52% 55.3%



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


31

Emissions

Figure 35_Total emissions – Environment BU [GRI 305-1_2_6_7]

2017 2018 2019

CO2 from combustion processes (t) 1,147,430 1,209,825 1,163,222

Biogenic emissions 1,083,853 1,087,985 1,183,778

CO2 from motor vehicles (t) 46,430 43,434 44,646

CO2 indirect from energy acquisition (t) 17,558 17,148 17,370

Fluorinated gases (t CO2eq) 448 524 303

NOx (t) 893 883 851

SO2 (t) 17 36 53

Powders (t) 5.7 6.2 7

Methane (CH4) - biogas losses released in landfills (t CO2eq) 94,452 90,188 78,701

Polycyclic aromatic hydrocarbons (kg) 0.37 0.07 0.08

Mercury (kg) 14 15 11

Other metals (Sb + As + Pb + Cr + Cu + Mn + Ni + V + Sn+Cd+Tl) (kg) 321 215 270

Dioxins (grams - toxic equivalency) 0.033 0.039 0.032

Dioxin-like PCBs (polychlorinated biphenyls) (grams - toxic equivalency) 0.0038 0.0079 0.0070

Figure 36_ Percentage of energy produced by the valorisation of waste in relation to total production [G4-EU2]

2017 2018 2019

Thermal energy from waste-to-energy and biogas process 52% 55% 58%

Electricity from waste-to-energy and biogas process 7% 7% 7%

Natural capital

32

Natural capital in the Generation and Trading BU


Figure 37_Resources used - Generation and Trading BU [GRI 301-1; GRI 302-1_2]

2017 2018 2019

Fuel (TJ)

Natural gas 56,472 56,336 64,339

Coal 20,999 19,577 9,604

Oil (heavy fuel oil and diesel) 16,415 9,342 9,787


Petrol 1.12 2.09 2.03

Diesel 3.99 5.44 4.31

Methane 0.02 0.00 0.01



Mineral acids 280.27 251 204

Water additives/conditioners 98 130 133

Ammonia (solution) 998 1,067 557


Active carbon 0 2.7 0

Cement, sand an inert materials 0 0.5 0

Sodium chloride 6 9.25 0

Technical gases (nitrogen, C02, hydrogen, oxygen) 66 87 67

Sodium hydroxide (solution) 243 192 180

Methanol, solvents and other products 29 39 23

Oils and lubricants 82 86 95




Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


33

Withdrawals


2017 2018 2019



From wells 3,531 3,144 2,347

From surface water body - fresh water 270 210 218

From third parties - fresh water 37 24 47

From surface water body - salt/sea water* 715 591 707

Total 4,661 4,073 3,418

Derived water for hydroelectric use(thousands of m3)

From surface water body - fresh water for hydroelectric production

2,436,679 3,158,093 3,082,634

Derived and returned cooling water (thousands of m3)

From surface water body - fresh water for cooling 876,452 871,287 910,481

From surface water body - salt/sea water* for cooling 743,428 532,300 424,753

Total 1,619,880 1,403,587 1,335,234


Effluents

Figure 39_Effluents and returned water [GRI 303-4]

2017 2018 2019

Industrial wastewater discharged(thousands of m3)


In surface water body (fresh water) 1,924 1,919 3,990

In coastal waters/salt water channels* 1,555 1,532 1,412

Total discharged water 2,131 2,200 5,609


Recovered in the production cycle 1,084 1,258 1,374


Returned water (of hydroelectric derivation)(thousands of m3)

2,436,679 3,158,118 3,082,634

Returned (cooling) water (thousands of m3)

In surface water body (fresh water) 1,619,880 1,403,857 910,481

In coastal waters/salt water channels* 743,428 532,300 424,753

Total 1,619,880 1,403,857 1,335,234

Pollutant discharges into surface water (t)(thousands of m3)

BOD 22.9 20.3 6.1

COD 58.8 45 18


Natural capital

34

Waste

Figure 40_Special waste produced - Generation and Trading BU [GRI 306-2_4]

2017 2018 2019


Special hazardous (t) 3,064 3,113 3,405

Total special (t) 45,386 50,955 31,207

Sent for recovery (% of total) 91% 92.4% 79.6%

Emissions

Figure 41_Total emissions - Generation and Trading BU [GRI 305-1_2_6_7]

2017 2018 2019

CO2 from combustion processes (t) 6,299,134 5,700,406 5,228,056

CO2 from motor vehicles (t) 376 553 467


Fluorinated gases (t CO2eq) 1,576 1,193 1,440

NOx (t) 2,313 2,060 1,886

SO2 (t) 1,340 1,135 747

Powders (t) 127 109 49

Polycyclic aromatic hydrocarbons (kg) 0.02 0.16 0.01

Mercury (kg) 4 2 2

Other metals (Sb + As + Pb + Cr + Cu + Mn + Ni + V + Sn+Cd+Tl) (kg) 293 215 48

Dioxins (grams - toxic equivalency) 0.003 0.006 0.002



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


35

Natural capital in the Networks and District Heating BU


Figure 42_Resources used – Networks and District Heating BU [GRI 301-1; GRI 302-1_2]

2017 2018 2019

Fuel (TJ)

Natural gas 4,215 3,830 3,297

Coal 1,828 1,781 1,805

Oil (Heavy fuels oil and diesel, diesel) 0.3 0.1 0.1

Biogas (from group purification plants) 7 6 12


Petrol 12 10 10

Diesel 18 18 18

Methane 7 9 9


Heat energy (GWh - purchased from external sources) 446 456 464


Mineral acids 547 674 628

Water additives/conditioners 8,457 8,141 8,235


Active carbon 53 94 72

Sodium chloride 23.65 10.8 21

Technical gases (nitrogen, CO2, hydrogen, oxygen) 174 140 141

Sodium hydroxide (solution) 159 198 196

Methanol, solvents and other products 678 740 998

Odorants 52 57 58

Oils and lubricants 43 48 57

Urea (solution) 520 528 668


Natural capital

36

Withdrawals


2017 2018 2019



From wells 373 511 623

Total 1,179 1,239 1,344

Derived and returned water (thousands of m3)

From surface water body - fresh water 15 22 3

From aquifer 1,391 1,559 1,716

Total 1,406 1,581 1,719

Water withdrawn for distribution to water service users (millions of m3)

124 94 93

Effluents

Figure 44_Effluents, returned water and distributed drinking water A2A Group [GRI 303-4]

2017 2018 2019

Industrial wastewater discharged(thousands of m3)


In surface water body (fresh water) 143 251 216

Total discharged water 561 606 586


Recovered in the production cycle 2.3 3.1 11

% of total water withdrawn 0.1% 0.1% 0.8%

Returned (cooling) water (thousands of m3)

In surface water body (fresh water) 15 22 3

In the aquifer 1,391 1,559 1,716

Total 1,406 1,581 1,719

Public water supplied to water service users (millions of m3) 69 54 54

Pollutant discharges into surface water (t)

BOD 0.4 1.2 1.1

COD 1.7 3.2 5.3



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


37

Waste

Figure 45_Special waste produced - Networks and District Heating BU [GRI 306-2_4]

2017 2018 2019


Special hazardous (t) 299.3877 321 333

Total special (t) 38,961 39,299 37,531

Sent for recovery (% of total) 92% 91% 88%

Emissions

Figure 46_Total emissions - Networks and District Heating BU [GRI 305-1_2_6_7]

2017 2018 2019

CO2 from combustion processes (t) 419,238 392,712 377,631




Methane (CH4) - losses from natural gas distribution networks (t CO2eq) 38,824 43,154 45,204

NOx (t) 259 179 133

SO2 (t) 123 129 117

Powders (t) 0.5 0.7 0.2

Figure 47_Electricity losses in the grid*

2017 2018 2019

GWh 335 299 301

* The 2017 and 2018 figures are updated for previous calculation errors.

Natural capital

38

Natural capital in the Corporate BU

Resources used

Figure 48_Resources used – Corporate Business Unit [GRI 301-1; GRI 302-1_2]

2017 2018 2019

Water (thousand m3) 169 168 177


Fuel (TJ)

Methane 29 25 26

Fuels (TJ)

Petrol 4.2 2.9 3.6

Diesel 56 48 48

Methane 3.2 3.2 1

Waste

Figure 49_Special waste produced – Corporate BU [GRI 306-2_4]

2017 2018 2019

Special non-hazardous (t) 111 169 135

Special hazardous (t) 93 93 18

Total special (t) 204 262 153

Sent for recovery (% of total) 90% 98.5% 99.8%

Emissions

Figure 50_Total emissions – Corporate BU [GRI 305-1_2_6_7]

2017 2018 2019

CO2 from combustion processes (t) 1,613 1,425 1,450






Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


39

Human capitalComposition of personnel

Figure 51_Personnel by category and type of contract [GRI 102-8; 405-1]

2017 2018 2019

MEN WOMEN TOTAL MEN WOMEN TOTAL MEN WOMEN TOTAL

Managers 147 27 174 146 29 175 147 27 174

Supervisors 458 135 593 485 145 630 507 156 663

White-collar workers 3,185 1,416 4,601 3,213 1,421 4,634 3,266 1,464 4,730

Blue-collar workers 5,241 205 5,446 4,992 202 5,194 5,104 199 5,303

Permanent workers 9,031 1,783 10,814 8,836 1,797 10,633 9,024 1,846 10,870

of which, on-the-job training and first job contracts 11 - 11 - - - - - -

Fixed-term workers of which: 551 51 602 518 45 563 402 22 424

Managers 1 - 1 1 1 2 1 1 2

Supervisors 2 - 2 2 - 2 1 - 1

White-collar workers 40 39 79 32 32 64 16 15 31

Blue-collar workers 507 11 518 483 12 495 384 6 390

TOTAL 9,582 1,834 11,416 9,354 1,842 11,196 9,426 1,868 11,294

of which workers with part-time contracts 38 286 324 75 275 350 112 275 387

of which workers with full-time contracts 9,544 1,548 11,092 9,279 1,567 10,846 9,314 1,593 10,907

Workers with non-standard contracts* (temporary/interns/collaborators)

84 44 128 118 40 158 156 66 222

* Workers under non-standard contracts do not include consultants.

Figure 52_Personnel by type of contract applied [GRI 102-41]

2017 2018 2019

Executive contracts 174 177 176

Electrical contracts 3,387 3,473 3,511

Single natural gas and water contracts

1,781 1,567 1,579

Commercial contracts 389 453 490

Municipal sanitation contracts

4,756 4,556 4,673

FISE contracts 661 735 804

Chemical contracts 178 178 0

Haulage contract* 4 4 58

Other contracts 86 53 3

Total 11,416 11,196 11,294

* Given the increase in this type of contract, details are added to the table.

Human capital

40

Figure 53_Personnel by workplace [GRI 102-8]

2017 2018 2019


Abruzzo 51 5 56 50 5 55 49 5 54

Calabria 78 1 79 77 1 78 78 1 79

Campania 192 16 208 193 17 210 197 18 215

Emilia Romagna 46 6 52 54 10 64 47 7 54

Friuli Venezia Giulia 151 5 156 149 5 154 143 4 147

Lazio 2 1 3 3 2 5 3 2 5

Liguria - - - - - - 57 4 61

Lombardy 8,757 1,769 10,526 8,508 1,770 10,278 8,531 1,795 10,326

Marches 7 4 11 8 4 12 7 4 11

Piedmont 88 21 109 100 22 122 107 22 129

Puglia 48 2 50 47 2 49 43 1 44

Sicily 160 4 164 160 4 164 156 5 161

Veneto - - - 4 - 4 4 - 4

International 2 - 2 1 - 1 4 - 4

TOTAL 9,582 1,834 11,416 9,354 1,842 11,196 9,426 1,868 11,294

Figure 54_Number of hires and turnover rate, by age, gender and type of contract [GRI 401-1]

2017 2018 2019


Permanent workers

Up to age 30 108 26 134 130 26 156 169 40 209

From 31 to 40 90 16 106 114 26 140 124 30 154

From 41 to 50 84 4 88 61 12 73 83 10 93

Over 50 24 0 24 31 3 34 62 6 68

Fixed-term workers

Up to age 30 221 24 245 188 22 210 131 14 145

From 31 to 40 157 6 163 141 12 153 102 1 103

From 41 to 50 108 1 109 97 5 102 82 0 82

Over 50 35 2 37 47 5 52 23 0 23

Total 827 79 906 809 111 920 776 101 877

Percentage of new employees out of total workforce

8.63% 4.31% 7.94% 8.44% 6.05% 8.22% 8.23% 5.41% 7.77%



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


41

Figure 55_Workers leaving, by gender [GRI 401-1]

2017 2018 2019


Retirement 168 10 178 251 9 260 267 21 288

Voluntary resignation 118 27 145 149 27 176 198 30 228

Decease 14 0 14 10 1 11 14 0 14

Dismissal 35 3 38 53 2 55 68 17 85

Other (e.g., end of fixed-term contract) 292 9 301 318 25 343 161 14 175

Total 627 49 676 781 64 845 708 82 790

Turnover rate* 6.54% 2.67% 5.92% 8.15% 3.49% 7.55% 7.51% 4.39% 6.99%

* The turnover rate was calculated according to the following formula: (departures) / (employees) at December 31.

Figure 56_Workers leaving, by age bracket [GRI 401-1]

2017 2018 2019

UP TO 30

31-40 41-50 OVER 50

TOTAL UP TO 30

31-40 41-50 OVER 50

TOTAL UP TO 30

31-40 41-50 OVER 50

TOTAL

Retirement - - - 178 178 - - - 260 260 0 0 0 288 288

Voluntary resignation 27 43 32 43 145 41 41 37 57 176 52 68 39 69 228

Decease 1 1 5 7 14 - 1 4 6 11 0 1 3 10 14

Dismissal 8 9 12 9 38 8 12 20 15 55 10 16 29 30 85

Other (e.g., end of fixed-term contract)

116 92 63 30 301 143 92 60 48 343 68 57 32 18 175

Total 152 145 112 267 676 192 146 121 386 845 130 142 103 415 790

Turnover rate 15.80% 6.50% 3.14% 5.69% 5.92% 19.96% 6.50% 3.40% 8.23% 7.55% 12.99% 6.34% 3.13% 8.71% 6.99%

Human capital

42

Welfare and diversity

Figure 57_Personnel by age bracket and gender* [GRI 405-1]

2017 2018

MANAGERS SUPERVISORS WHITE-COLLAR WORKERS BLUE-COLLAR WORKERS TOTAL MANAGERS SUPERVISORS WHITE-COLLAR WORKERS BLUE-COLLAR WORKERS TOTAL

M W M W M W M W M W M W M W M W

Up to age 30 - - 1 - 231 167 553 10 962 - - - - 235 147 541 6 929

From 31 to 40 5 1 76 29 502 388 1,152 47 2,200 5 - 83 27 562 404 1,103 48 2,232

From 41 to 50 47 15 145 47 891 462 1,853 104 3,564 45 17 154 55 819 445 1,736 100 3,371

Over 50 96 11 238 59 1,600 441 2,190 55 4,690 97 13 250 63 1,629 457 2,095 60 4,664

Total 148 27 460 135 3,224 1,458 5,748 216 11,416 147 30 487 145 3,245 1,453 5,475 214 11,196

* It is represented that the age is calculated at the time of the employee's recruitment/termination and not at 12/31.

2019

MANAGERS SUPERVISORS WHITE-COLLAR WORKERS BLUE-COLLAR WORKERS TOTAL

M W M W M W M W

Up to age 30 - - 1 2 271 154 569 4 1,001

From 31 to 40 7 - 89 26 600 407 1,068 41 2,238

From 41 to 50 49 16 162 65 775 434 1,697 93 3,291

Over 50 92 12 256 63 1,636 484 2,154 67 4,764

Total 148 28 508 156 3,282 1,479 5,488 205 11,294

Figure 58_Personnel by protected categories [GRI 405-1]

2017 2018 2019


PRO.CAT. (ART.18 PARA.2 LAW 68/99) 36 18 54 36 18 54 36 15 51

People with disabilities 348 104 452 326 97 423 302 87 389

Total 384 122 506 362 115 477 338 102 440

Figure 59_Personnel by position and company seniority [G4-EU15]

2017 2018 2019

MANAGERS SUPERVI-SORS

WHITE-COLLAR

WORKERS

BLUE-COLLAR

WORKERS

TOTAL % MANAGERS SUPERVI-SORS

WHITE-COLLAR

WORKERS

BLUE-COLLAR

WORKERS

TOTAL % MANAGERS SUPERVISORS WHITE-COLLAR WORKERS

BLUE-COLLAR WORKERS

TOTAL %

Up to age 10 60 192 1,383 2,548 4,183 36.6% 61 199 1,387 2,348 3,995 35.7% 61 213 1,481 2,323 4,078 36.1%

From 11 to 20 59 141 845 1,433 2,478 21.7% 62 168 862 1,607 2,699 24.1% 65 193 934 1,705 2,897 25.7%

From 21 to 30 41 156 1,531 1,522 3,250 28.5% 39 139 1,351 1,212 2,741 24.5% 38 120 1,200 1,085 2,443 21.6%

Over 30 15 106 920 464 1,505 13.2% 15 126 1,097 523 1,761 15.7% 12 138 1,146 580 1,876 16.6%

Total 175 595 4,679 5,967 11,416 100.0% 177 632 4,697 5,690 11,196 100.0% 176 664 4,761 5,693 11,294 100.0%

Figure 60_Personnel by educational qualification

2017 2018 2019MEN WOMEN TOTAL % MEN WOMEN TOTAL % MEN WOMEN TOTAL %

Undergraduate degree

927 533 1,460 12.8% 1,022 570 1,592 14.22% 1,143 619 1,762 15.6%

Secondary school diploma

3,548 917 4,465 39.1% 3,672 921 4,593 41.02% 3,711 924 4,635 41.0%

Vocational degree 796 93 889 7.8% 661 73 734 6.56% 635 66 701 6.2%

Compulsory schooling

4,311 291 4,602 40.3% 3,999 278 4,277 38.20% 3,937 259 4,196 37.2%

Total 9,582 1,834 11,416 100% 9,354 1,842 11,196 100% 9,426 1,868 11,294 100%



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


43

Welfare and diversity

Figure 57_Personnel by age bracket and gender* [GRI 405-1]

2017 2018

MANAGERS SUPERVISORS WHITE-COLLAR WORKERS BLUE-COLLAR WORKERS TOTAL MANAGERS SUPERVISORS WHITE-COLLAR WORKERS BLUE-COLLAR WORKERS TOTAL

M W M W M W M W M W M W M W M W

Up to age 30 - - 1 - 231 167 553 10 962 - - - - 235 147 541 6 929

From 31 to 40 5 1 76 29 502 388 1,152 47 2,200 5 - 83 27 562 404 1,103 48 2,232

From 41 to 50 47 15 145 47 891 462 1,853 104 3,564 45 17 154 55 819 445 1,736 100 3,371

Over 50 96 11 238 59 1,600 441 2,190 55 4,690 97 13 250 63 1,629 457 2,095 60 4,664

Total 148 27 460 135 3,224 1,458 5,748 216 11,416 147 30 487 145 3,245 1,453 5,475 214 11,196

* It is represented that the age is calculated at the time of the employee's recruitment/termination and not at 12/31.

2019

MANAGERS SUPERVISORS WHITE-COLLAR WORKERS BLUE-COLLAR WORKERS TOTAL

M W M W M W M W

Up to age 30 - - 1 2 271 154 569 4 1,001

From 31 to 40 7 - 89 26 600 407 1,068 41 2,238

From 41 to 50 49 16 162 65 775 434 1,697 93 3,291

Over 50 92 12 256 63 1,636 484 2,154 67 4,764

Total 148 28 508 156 3,282 1,479 5,488 205 11,294

Figure 58_Personnel by protected categories [GRI 405-1]

2017 2018 2019


PRO.CAT. (ART.18 PARA.2 LAW 68/99) 36 18 54 36 18 54 36 15 51

People with disabilities 348 104 452 326 97 423 302 87 389

Total 384 122 506 362 115 477 338 102 440

Figure 59_Personnel by position and company seniority [G4-EU15]

2017 2018 2019

MANAGERS SUPERVI-SORS

WHITE-COLLAR

WORKERS

BLUE-COLLAR

WORKERS

TOTAL % MANAGERS SUPERVI-SORS

WHITE-COLLAR

WORKERS

BLUE-COLLAR

WORKERS

TOTAL % MANAGERS SUPERVISORS WHITE-COLLAR WORKERS

BLUE-COLLAR WORKERS

TOTAL %

Up to age 10 60 192 1,383 2,548 4,183 36.6% 61 199 1,387 2,348 3,995 35.7% 61 213 1,481 2,323 4,078 36.1%

From 11 to 20 59 141 845 1,433 2,478 21.7% 62 168 862 1,607 2,699 24.1% 65 193 934 1,705 2,897 25.7%

From 21 to 30 41 156 1,531 1,522 3,250 28.5% 39 139 1,351 1,212 2,741 24.5% 38 120 1,200 1,085 2,443 21.6%

Over 30 15 106 920 464 1,505 13.2% 15 126 1,097 523 1,761 15.7% 12 138 1,146 580 1,876 16.6%

Total 175 595 4,679 5,967 11,416 100.0% 177 632 4,697 5,690 11,196 100.0% 176 664 4,761 5,693 11,294 100.0%

Figure 60_Personnel by educational qualification

2017 2018 2019MEN WOMEN TOTAL % MEN WOMEN TOTAL % MEN WOMEN TOTAL %

Undergraduate degree

927 533 1,460 12.8% 1,022 570 1,592 14.22% 1,143 619 1,762 15.6%

Secondary school diploma

3,548 917 4,465 39.1% 3,672 921 4,593 41.02% 3,711 924 4,635 41.0%

Vocational degree 796 93 889 7.8% 661 73 734 6.56% 635 66 701 6.2%

Compulsory schooling

4,311 291 4,602 40.3% 3,999 278 4,277 38.20% 3,937 259 4,196 37.2%

Total 9,582 1,834 11,416 100% 9,354 1,842 11,196 100% 9,426 1,868 11,294 100%

Human capital

44

Personnel training and development

Figure 61_Training delivered by role [GRI 404-1]

2017 2018 2019

NUMBER OF HOURS

AVERAGE ANNUAL

HOURS OF TRAINING PER

EMPLOYEE

NUMBER OF HOURS

AVERAGE ANNUAL


EMPLOYEE

NUMBER OF HOURS

AVERAGE ANNUAL


EMPLOYEE

Managers 6,691 38.2 9,313 52.6 5,583 31.7

Supervisors 22,542 37.9 35,099 55.5 29,307 44.1

White-collar workers 96,744 20.7 116,255 24.7 101,068 21.2

Blue-collar workers 86,979 14.7 66,996 11.8 65,331 11.5

Total 212,956 18.7 227,663 20.3 201,289 17.8

Figure 62_Training delivered by gender [GRI 404-1]

2017 2018 2019

NUMBER OF HOURS

AVERAGE HOURS PER EMPLOYEE

NUMBER OF HOURS


NUMBER OF HOURS


Men 185,338 19.3 186,109 19.9 170,427 18.1

Women 27,617 15.1 41,554 22.6 30,862 16.5

Total 212,956 18.7 227,663 20.3 201,289 17.8

Figure 63_Health and safety training

2017 2018 2019

Training hours 112,023 102,776 96,067

Figure 64_Cost of training

2017 2018 2019

€ 3,013,190 2,520,072 1,800,839

% of training costs covered by inter-professional funds 29% 29% 37%

Figure 65_Employees trained in the year (percentage of total)

2017 2018 2019

% 92% 85% 81%

Figure 66_Attendance of training courses (total number)

2017 2018 2019

no. 55,830 57,209 54,465



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


45

Figure 67_Percentage of employees who regularly receive performance assessments [GRI 404-3]

2017 2018 2019

% 47% 49% 49%

Figure 68_Third-party employees that have undergone relevant health and safety training

NO. EMPLOYEES INVOLVED

TRAINING HOURS PROVIDED

2017 2,353 4,506

2018 1,291 3,876

2019 3,702 6,176

Health and safety at work

Figure 69_Data on injuries* [GRI 403-2]

2017 2018 2019

Deaths 0 0 0

Number of accidents (excluding commuting) 577 521 461

Men 526 485 436

Women 51 36 25

Number of days of absence 14,861 12,710 11,238

Average duration 25.76 24.21 24.38

Frequency index FI 31.80 29.14 24.95

Severity index SI 0.82 0.71 0.61

Incidence index II 10.0 8.0 7.4

Commuting accidents 113 90 86

* When calculating indices, only professional accidents, that result in at least one day of absence, not including the day of the event, are considered. Medications and precautionary absences and unrecognised accidents are therefore excluded. Professional accidents also include those that occur in transit, with or without a vehicle. The table counts all injuries involving employees.

FI = frequency index (no. accidents x 1,000,000 : hours worked)

SI = severity index (no. days absence x 1,000: hours worked)

II = incidence index (no. accidents x 1,000: headcount) – it is calculated on the number of commuting accidents.

Commuting accidents: accidents suffered by workers while commuting from home to work and vice-versa (but not while in service).

Figure 70_ Incident indices of contractors and subcontractors for construction and maintenance works [GRI 403-2_G4-EU17]

NO. OF HOURS WORKED BY

CONTRACTORS

NUMBER DECEASED

NUMBER OF INCIDENTS

DAYS LOST FREQUENCY INDEX

SEVERITY INDEX

2017 2,350,008 0 15 354 6.38 0.15

2018 2,264,294 0 22 169 9.72 0.07

2019 4,492,370 0 25 278 5.56 0.06

Human capital

46

Figure 71_Health data by BU

GENERATION AND TRADING

BU

MARKET BU

ENVIRONMENT BU

NETWORKS AND DISTRICT HEATING BU

CORPORATE TOTAL

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

Visits as per 81/08 825 746 672 171 260 337 6,112 5,880 5,790 1,259 1,226 1,361 420 513 536 8,787 8,625 8,696

Tox visits - 166 114 - 60 27 - 2,120 2,292 - 285 368 - - 12 - 2,631 2,813

Assessments 1,715 1,833 1,797 174 277 406 8,789 11,045 13,686 2,633 2,533 2,885 461 494 632 13,772 16,182 19,406

Influenza Vaccination - 35 13 - 39 71 - 223 274 - 198 304 - 129 227 - 624 889

Vaccinations 80 79 11 29 42 18 943 851 1497 509 314 174 114 2 18 1,675 1,288 1,718

Site inspections 17 16 17 8 6 7 29 54 67 35 31 35 11 12 8 100 119 134

Reporting occupational illness

- 5 8 - 0 0 - 4 11 - 0 1 - 0 0 3 9 20

Health provisions - 17 17 - 5 5 - 27 27 - 9 9 - 7 7 41 65 65

Specialist visits 7 - 0 - - 0 272 68 125 3 7 5 - - 0 282 75 130

The breakdown of data by Business Unit was carried out as of 2018.

Figure 72_Percentage of workers represented in formal health and safety committees [GRI 403-1]

2017 2018 2019

Percentage of the total 100% 100% 100%



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


47

Absenteeism

Figure 73_Number of working days lost by gender [GRI 403-2]

2017 2018 2019

MEN WOMEN MEN WOMEN MEN WOMEN

Illness 97,453 18,880 98,515 18,166 106,409 18,946

Unpaid leave/absence 6,461 1,473 6,008 698 6,414 1,028

National strikes 497 84 626 73 30 3

Accidents 14,082 1,782 12,390 1,391 11,355 1,062

Total 118,493 22,219 117,539 20,327 124,208 21,039

Total days worked by the workforce in the reporting period

2,091,868 370,106 2,424,831 457,695 2,488,184 465,105

Absentee Rate 6% 6% 5% 4% 5% 5%

* It should be noted that the figures presented in this table refer solely to working days lost due to accidents and not to calendar days lost, which are used to calculate the severity index.

Figure 74_ Rate of days lost* (total number of days lost for injury or illness out of total working hours by the workforce in the reporting period) [GRI 403-2]

2017 2018 2019

MEN WOMEN GENERAL TOTAL



Days lost to accidents 14,802 1,782 15,864 12,390 1,391 13,781 11,355 1,062 12,417

Total workable hours of the workforce in the reporting period

15,217,692 2,633,211 17,850,903 17,613,164 3,346,340 20,959,504 18,063,290 3,386,063 21,449,353

Total hours worked by the workforce in the reporting period

13,157,472 2,120,568 15,278,040 15,279,598 2,694,030 17,973,628 15,693,976 2,801,174 18,495,150

Lost day rate 0.10% 0.07% 0.08% 0.07% 0.04% 0.07% 0.06% 0.03% 0.06%

* Days lost means days on which work cannot be performed due to an occupational accident or occupational illness. They are not counted if there is a partial return to working activity. Occupational illness is defined as an illness caused by the working environment or professional activity (e.g., stress or regular exposure to harmful chemical substances) or resulting from an accident.

Human capital

48

Figure 75_Return to work and retention rates after parental leave*

2017 2018 2019

MEN WOMEN MEN WOMEN MEN WOMEN

Employees who took parental leave 229 195 325 208 338 219

of whom, employees who returned to work in 2017 216 165 - - 0 0

of whom, employees who returned to work in 2018 13 30 302 176 0 0

of whom, employees who returned to work in 2019 0 0 22 19 328 183

* Employees who did not return to work relative to 2018 have not necessarily resigned, but are continuing their leave.

Figure 76_Registrations with trade union

2017 2018 2019

NUMBER NUMBER NUMBER

Members of Trade Unions 4,799 4,834 4,831

Figure 77_Hours of strikes

2017 2018 2019

Total strike hours 4,402 502 237

Strike hours per capita* 0.4 0 0

* Per capita hours are calculated on the average headcount.

Benefits and remuneration

Figure 78_Contributions to Recreational and Welfare Circles

2017 2018 2019

Total (€) 5,000,668 5,097,116 5,325,796



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


49

Relational capitalRelations with customers

Electricity and natural gas sales service

Figure 79_Electricity supply contracts by type of market

2017 2018 2019

Protected market 619,114 547,994 476,269

Free market 472,003 586,998 749,554

Total 1,091,117 1,134,992 1,225,823

Figure 80_Electricity supply contracts by type of customer [G4 - EU3]

2017 2018 2019

Domestic 895,041 914,937 946,223

SME 128,704 133,237 139,574

Large customers 34,292 52,563 82,158

Condominiums 33,080 34,255 34,498

Public lighting - - 23,370

Total 1,091,117 1,134,992 1,225,823

Figure 81_Gas supply contracts by type of market

2017 2018 2019

Protected market 841,282 698,406 597,714

Free market 453,141 542,554 645,009

Total 1,294,423 1,240,960 1,242,723

Figure 82_Gas supply contracts by type of customer [G4 - EU3]

2017 2018 2019

Domestic 1,212,980 1,161,611 1,159,003

SME 64,933 63,722 67,482

Large customers 6,748 6,582 7,663

Condominiums 9,762 9,045 8,575

Total 1,294,423 1,240,960 1,242,723

Figure 83_Geographic breakdown of electricity sales volumes

2017 2018 2019

Lombardy 83% 76% 65%

Rest of Italy 17% 24% 35%

Relational capital

50

Figure 84_Geographic breakdown of gas sales volumes

2017 2018 2019

Lombardy 90% 88% 72%

Rest of Italy 10% 12% 28%

Figure 85_Number of fidelity programme adhesions

2017* 2018 2019

Adhesions 286,834 40,522 98,298

Increase (percentage) 12% -86% 143%

* The figure is calculated as at 03/31/2017, the date on which the programme closed in accordance with the regulation.

Figure 86_Cerved Energy Monitor survey on the level of satisfaction of A2A Energia customers

BUSINESS SEGMENT

2017 2018

CSI MARKET STANDARD POSITION CSI MARKET

STANDARD POSITION

GasDomestic 90.1 89.4 3 of 7 93.3 92.0 1 of 7

VAT reg. & SME 92.4 92 1 of 6 93.8 93.4 1 of 6

ElectricityDomestic 91.1 89.7 3 of 8 91.7 91.1 5 of 9

VAT reg. & SME 90.7 89.5 2 of 10 91.1 91.7 3 of 10

Figure 87_Quality of the call centre

ARERA TARGET

A2A ENERGIA LINEA PIÙ

2017 2018 2019 2017 2018 2019

Percentage of successful calls >=80% 94.2% 96.7% 93.5% 97.4% 96.1% 91.8%

Accessibility of lines and services (time when line is free vs operator presence time)

>=80% 99.3% 100.0% 99.8% 100.0% 100.0% 100.0%

Average waiting time on the telephone <=240'' 140 122 160 84 84 107



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


51

Figure 88_Gas and electricity complaint trend

2017 2018 2019

A2A ENERGIA - Number of complaints 3,447 3,550 4,281

LINEA PIÙ - Number of complaints 2,399 1,682 1,766

A2A ENERGIA - percentage “simple” complaints out of average number of customers* 0.17% 0.18% 0.20%

LINEA PIÙ - percentage “simple” complaints out of average number of customers* 0.82% 0.56% 0.55%

* ARERA defines complaints as “simple” when they refer exclusively to the seller and do not require any data pertaining to the distribution company in order to prepare the answer.

Figure 89_Electricity bill cost trends (in euro) for a typical household*


2017 2018 2019 2017 2018 2019

Sales services 245.16 274.78 253.92 264.52 302.46 253.92

Network services 206.04 204.03 231.75 206.35 204.05 231.75

Tax 21.82 21.82 21.79 21.79 21.79 21.79

VAT 47.3 50.06 50.75 49.27 52.83 50.75

Total 520.32 550.69 558.21 541.93 581.13 558.21

* For electricity, the Authority took as an example a resident domestic use contract, with 3 kW of available power and an average annual use of 2,700 kWh.

Figure 90_Gas bill cost trends (in euro) for a typical household*


2017 2018 2019 2017 2018 2019

Sales services 411.56 454.70 419.18 421.68 478.95 419.18

Network services 214.75 224.25 248.71 212.16 221.24 248.71

Tax 224.68 224.68 224.68 224.68 224.68 224.68

VAT 173.2 182.61 180.63 153.55 185 180.63

Total 1,024 1,086.24 1,073.20 1,012.08 1,109.87 1,073.20

* For gas, domestic use with independent heating in the north-east and an annual use of 1,400 m3 was considered by the Authority.

Figure 91_Affluence at branches

2017 2018 2019

Total number of customers served 285,550 246,409 240,354

A2A Energia 200,140 170,513 168,054

Linea Più 85,410 75,896 72,300

Average office waiting time in minutes

A2A Energia 07'30" 06'18" 12'54"

Linea Più 12'13" 09'51" 10'30"

Relational capital

52

Figure 92_Number of electricity and gas contracts with the Bollett@mail service

2017 2018 2019

A2A Energia 325,580 367,018 458,659

Linea Più 47,231 66,315 76,122

Lumenergia - - 1,362

Total 372,811 433,333 536,143

Increase (percentage) 14.6% 30.5% 23.7%

Figure 93_Number of visits to the commercial websites

2017 2018 2019**

Total number of visits 4,144,495 4,153,558 5,135,493

Registered with the online counter - 391,626 425,985

Number of self-metering* - - 72.3%

* The estimated value does not include self-metering received through the APP.

** From May 1, 2019, Linea Più was incorporated into A2A Energia. As a result of this transaction, the 2019 figures have been included in A2A Energia's figures.

Figure 94_Green energy sold (GWh)

2017 2018 2019

Government 1% 2% 2%

Mass market 68% 45% 51%

Others 31% 53% 47%

Total (GWh) 1,273 2,229 2,276

Electricity and natural gas distribution service

Figure 95_Extension of the electricity distribution service* [G4 – EU3_EU4]

2017 2018 2019

Customers connected 1,176,799 1,183,035 1,190,375

* Weighted average number of POD active during the year calculated on the basis of ARERA and CSEA provisions and valid for tariff purposes.

Figure 96_Extension of the gas distribution service*

2017 2018 2019

Customers connected 1,469,330 1,511,748 1,502,645

* Weighted average number of PDR active during the year calculated on the basis of ARERA and CSEA provisions and valid for tariff purposes.



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


53

Figure 97_Technical quality of electricity [G4 – EU29_EU28]

MILAN

HIGH DENSITY AREA MEDIUM DENSITY AREA LOW DENSITY AREA

2017 2018 2019ARERA 2019

OBJECTIVE2017 2018 2019

ARERA 2019

OBJECTIVE2017 2018 2019

ARERA 2019

OBJECTIVE

Average annual minutes of outage per LV user due to long outages without notice

24.83 27.61 32.81 25 13.43 24.42 34.55 40 N/A N/A N/A -

Average annual number of outages per LV user due to long outages without notice

1.36 1.39 1.51 1.08 0.88 1.46 1.76 2.04 N/A N/A N/A -

BRESCIA


2017 2018 2019ARERA 2019

OBJECTIVE2017 2018 2019

ARERA 2019

OBJECTIVE2017 2018 2019

ARERA 2019

OBJECTIVE


4.92 7.39 8.81 25 8.03 16.97 22.48 40 26.46 31.65 29.45 60


0.58 0.76 0.83 1.00 1.18 1.67 2.29 2.00 2.88 3.10 3.07 4

CREMONA


2017 2018 2019ARERA 2019

OBJECTIVE2017 2018 2019

ARERA 2019

OBJECTIVE2017 2018 2019

ARERA 2019

OBJECTIVE


4.54 2.44 9.10 25 N/A N/A N/A - 10.41 27.90 12.90 60


0.31 0.13 0.29 1 N/A N/A N/A - 0.88 0.78 1.24 4

Relational capital

54

Figure 98_Electricity emergency service [G4 – EU28]

MILAN BRESCIA

2017 2018 2019 2017 2018 2019

Number MV customers with more than 6 outages per year for high density areas

14 25 12 - - 0

Number of MV customers with more than 8 outages a year for medium density areas

- - 0 - 5 4

Number of MV customers with more than 9 outages a year for low density areas

- - - 12 12 3

In the event of an electricity shortfall, Terna - National Electrical Network requests that distributors implement a scheduled rotating outage plan in order to avoid a general blackout. There are five levels of severity of electricity shortfall used to determine the number of users involved and the frequency of outages. The disconnections, which will last up to 90 minutes, are notified by Terna 30 minutes in advance and can take place at any time during the specified time frames and not necessarily at their start. The scheduled outage plan prepared by Unareti, by day and time slot, is available from the company’s website.

Figure 99_Commercial quality of electricity: general indicators for the Milan Brescia Area

ARERA LEVEL - LVSERVICES PROVIDED ON THE

INDICATED TIMETABLE (%)

2017 2018 2019

Minimum percentage of detailed responses to written complaints or requests for information provided within the maximum period of 30 calendar days

95% 93.93% 96.59% 95.40%

ARERA LEVEL - MVSERVICES PROVIDED ON THE


2017 2018 2019


95% 98.93% 99.50% 98.86%

Figure 100_Commercial quality of electricity: general indicators for the Cremona Area

ARERA LEVEL - LVSERVICES PROVIDED ON THE


2017 2018 2019


95% 100% 100% 100%

ARERA LEVEL - MVSERVICES PROVIDED ON THE


2017 2018 2019


95% 100% - 100%



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


55

Figure 101_Electricity commercial quality: specific indicators for the Milan-Brescia Area

LEVEL ARERA

RES. 646/15

SERVICES PROVIDED ON THE INDICATED TIMETABLE (%)

AVERAGE TIME TO EXECUTE THE SERVICE (DAYS)

2017 2018 2019 2017 2018 2019

Time to prepare estimate for work on the network

15 working days for LV

30 working days for MV

98.66% 98.40% 96.34% 6.61 6.89 7.83

Execution time for simple work



99.32% 98.66% 98.22% 4.71 5.43 5.46

Execution time for complex work 50 working days 99.86% 99.46% 99.03% 10.14 10.21 13.21

Activation time for LV/MV supply 5 working days 99.84% 99.68% 99.44% 0.63 0.62 0.63

Supply de-activation time



99.86% 99.59% 99.57% 0.59 0.64 0.64

Reactivation time following suspension due to non-payment

1 working day 99.90% 99.70% 99.75% 0.08 0.08 0.08

Observance of time bracket for appointments 2 hours 99.84% 99.45% 99.27% - - -

Time for reinstating supply following a fault in the measurement group on working days between 8:00 a.m. and 6:00 p.m. on the LV network

3 hours 88.01% 81.87% 76.58% 02:01 02:31 02:39

Time for reinstating supply following a fault in the measurement group on non-working days and between 6:00 p.m. and 8:00 a.m. on the LV network

4 hours 97.02% 93.73% 90.43% 01:52 02:11 02:28

Time to report results of testing of LV/MV meter equipment

15 working days 92.70% 92.45% 75.35% 11.4 10.62 11.86

Time for notifying the result of the verification of voltage 20 working days 95.45% 84.62% 65.38% 15.28 20.93 21.31

Relational capital

56

Figure 102_Electricity commercial quality: specific indicators for the Cremona Area

ARERA LEVEL

RES. 646/15



2017 2018 2019 2017 2018 2019




100%100%

98.64%81.82%

100%100%

3.348.88

4.3920.91

4.9618.60




98%100% 99.45% 100%

100%2.983.00 2.62 2.28

0

Execution time for complex work



100%100%

100%100%

100%100%

14.4510.50

16.5010.50

20.6422.57

Activation time for LV/MV supply 5 working days 100% 99.96%

100%99.6%100% 0.58 0.31

30.352.33




100%100%

99.98%100%

99.80%100%

0.54.00

0.436

0.561


1 working day on zeroed

1 working day reduced 15%

100%100% 99.83% 99.64% 0.11

0.6 0.08 0.1

Observance of time bracket for appointments 2 hours 100% 100% 100% - - -


3 hours 100% 100% 100% 01:10 01:22 01:13

Time for reinstating supply following a fault in the measurement group on working days between 6:00 p.m. and 8:00 a.m. on the LV network

4 hours 100% 100% 100% 01:10 01:48 01:27

Time to report results of testing of LV/MV meter equipment 15 working days 100% 78% 100% 13 9.67 8.38

Time for notifying the result of the verification of voltage 20 working days - - - - - -

Figure 103_Gas technical quality

BASE LEVEL

BASE REFERENCE

BASE EFFECTIVE 2017 BASE EFFECTIVE 2018 BASE EFFECTIVE 2019

MILAN BRESCIA BERGAMO VARESE CREMONA LODI PAVIA MILAN BRESCIA BERGAMO CREMONA LODI PAVIA MILAN BRESCIA BERGAMO CREMONA LODI PAVIA

Annual percentage of the high and medium pressure network inspected 30% 90% 72% 78% - 85% 100% 100% 100% 75% 100% 100% 100% 100% 100% 72% 0% 100% 100% 100% 100%

Annual percentage of the low pressure network inspected 20% 70% 56% 56% - 97% 100% 100% 100% 65% 70% 100% 100% 100% 100% 56% 100% 100% 100% 100% 100%

Annual number of leaks located per km of network inspected 0.8 0.1 0.13 0.07 - 0.00 0.01 0.02 0.05 0.15 0.08 0.06 0.01 0.01 0.03 0.22 0.12 0.04 0.04 0.02 0.03

Annual number of leaks located in response to reports from third parties per km of network 0.8 0.1 0.20 0.07 0.03 0.08 - 0.01 0.02 0.17 0.05 0.03 0.03 0.01 0.02 0.17 0.08 0.02 0.03 0.01 0.02

Conventional number of measurements of degree of natural gas odorant per thousand end customers 0.19 0.5 0.63 1.70 4.48 1.39 1.70 1.80 1.10 0.95 1.81 2.23 1.70 1.80 1.10 0.95 1.73 1.88 1.70 1.80 1.10



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


57

Figure 102_Electricity commercial quality: specific indicators for the Cremona Area

ARERA LEVEL

RES. 646/15



2017 2018 2019 2017 2018 2019




100%100%

98.64%81.82%

100%100%

3.348.88

4.3920.91

4.9618.60




98%100% 99.45% 100%

100%2.983.00 2.62 2.28

0

Execution time for complex work



100%100%

100%100%

100%100%

14.4510.50

16.5010.50

20.6422.57

Activation time for LV/MV supply 5 working days 100% 99.96%

100%99.6%100% 0.58 0.31

30.352.33




100%100%

99.98%100%

99.80%100%

0.54.00

0.436

0.561


1 working day on zeroed

1 working day reduced 15%

100%100% 99.83% 99.64% 0.11

0.6 0.08 0.1

Observance of time bracket for appointments 2 hours 100% 100% 100% - - -


3 hours 100% 100% 100% 01:10 01:22 01:13

Time for reinstating supply following a fault in the measurement group on working days between 6:00 p.m. and 8:00 a.m. on the LV network

4 hours 100% 100% 100% 01:10 01:48 01:27

Time to report results of testing of LV/MV meter equipment 15 working days 100% 78% 100% 13 9.67 8.38

Time for notifying the result of the verification of voltage 20 working days - - - - - -

Figure 103_Gas technical quality

BASE LEVEL

BASE REFERENCE

BASE EFFECTIVE 2017 BASE EFFECTIVE 2018 BASE EFFECTIVE 2019

MILAN BRESCIA BERGAMO VARESE CREMONA LODI PAVIA MILAN BRESCIA BERGAMO CREMONA LODI PAVIA MILAN BRESCIA BERGAMO CREMONA LODI PAVIA

Annual percentage of the high and medium pressure network inspected 30% 90% 72% 78% - 85% 100% 100% 100% 75% 100% 100% 100% 100% 100% 72% 0% 100% 100% 100% 100%

Annual percentage of the low pressure network inspected 20% 70% 56% 56% - 97% 100% 100% 100% 65% 70% 100% 100% 100% 100% 56% 100% 100% 100% 100% 100%

Annual number of leaks located per km of network inspected 0.8 0.1 0.13 0.07 - 0.00 0.01 0.02 0.05 0.15 0.08 0.06 0.01 0.01 0.03 0.22 0.12 0.04 0.04 0.02 0.03

Annual number of leaks located in response to reports from third parties per km of network 0.8 0.1 0.20 0.07 0.03 0.08 - 0.01 0.02 0.17 0.05 0.03 0.03 0.01 0.02 0.17 0.08 0.02 0.03 0.01 0.02

Conventional number of measurements of degree of natural gas odorant per thousand end customers 0.19 0.5 0.63 1.70 4.48 1.39 1.70 1.80 1.10 0.95 1.81 2.23 1.70 1.80 1.10 0.95 1.73 1.88 1.70 1.80 1.10

Relational capital

58

Figure 104_ Annual number of calls to the switchboard with a time to arrival of the team at destination <= 60 min

BASE LEVEL 90%REF. LEVEL 95%

2017 2018 2019

Milan 99.00% 98.65% 98.37%

Brescia 99.81% 99.90% 100.00%

Bergamo 100.00% 100.00% 100.00%

Cremona 99.80% 99.60% 99.90%

Lodi 100.00% 100.00% 100.00%

Pavia 100.00% 100.00% 100.00%

Figure 105_Gas commercial quality: general indicators - services provided on the indicated timetable (%)

LEVEL ARERA

UNARETI LD RETI ASVT

2017 2018 2019 2017 2018 2019 2017 2018 2019

Percentage of requests to perform complicated jobs which were completed within a maximum of 60 working days

90% 98.83% 97.69% 98.71% 100.00% 100.00% 98.00% - - 100.00%

Percentage of justified replies to written claims or information requests communicated within a maximum of 30 working days

95% 94.56% 97.37% 97.54% 100.00% 100.00% 98.00% 100.00% 100.00% 100.00%

Figure 106_Gas commercial quality: specific indicators: Milan, Brescia, Bergamo and Chieti Area - types of services

LEVEL ARERA

RES. 574/13



2017 2018 2019 2017 2018 2019

Estimate time (simple work) 15 working days 85.86% 93.96% 94.07% 10.58 9.37 8.46

Execution time (simple work) 10 working days 80.97% 80.41% 96.37% 8.50 8.34 6.84

Estimating time (complex works) 30 working days 96.08% 96.39% 95.70% 13.92 14.89 13.77

Supply activation time 10 working days 99.86% 99.88% 99.84% 3.31 3.10 3.18

Supply de-activation time 5 working days 99.51% 99.58% 99.66% 3.05 2.80 2.75

Reactivation time following suspension due to non-payment 2 working days 97.07% 98.14% 98.87% 1.18 1.15 1.12


Time to notify results of testing of meter equipment

20 working days 96.39% 77.08% 93.18% 18.01 15.60 10.87



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


59

Figure 107_Gas commercial quality - specific indicators ASVT - types of services

ARERA LEVELS RES.

574/13 OF 01/01/2014



2017 2018 2019 2017 2018 2019



Estimating time (complex works)

30 working days 100.00% - 100.00% 3.00 - 1.00




2 working days 100.00% 100.00% 99.61% 0.65 0.52 0.50



20 working days 100.00% 80.00% 100.00% 16.20 26.20 18.50

Figure 108_Gas commercial quality - specific indicators LD RETI - types of services

ARERA LEVELS RES.

574/13 OF 01/01/2014



2017 2018 2019 2017 2018 2019



Estimating time (complex works)

30 working days 100.00% 100.00% 100.00% 5.33 6.08 7.58




2 working days 97.33% 98.10% 95.00% 1.23 1.23 1.27

Observance of time bracket for appointments 2 hours 98.89% 99.12% 99.00% - 00:00 -


20 working days 67.35% 59.65% 83.00% 18.31 20.72 16.63

Relational capital

60

Integrated water service

Figure 109_Extension of integrated water service

2017 2018 2019

Municipalities served by Integrated Water Service 129 95 95

Municipalities served by aqueduct service 120 86 86

Customers served aqueduct* 308,178 217,781 217,545

Inhabitants served aqueduct* 886,195 664,503 617,725

Inhabitants served by sewers 652,956 652,754 657,628

Inhabitants served by purification 641,194 640,967 581,251

* The 2018 figures have been updated to correct a calculation error.

Figure 110_Call center quality [GRI 102-43_44]

A2A CICLO IDRICO

2017 2018 2019

Service accessibility rate (free lines with respect to operator presence time) 100% 100% 100%

Number of calls to the call centre 118,231 94,205 119,803

Average telephone waiting time for calls from end customers (seconds) 78 72 152

Percentage of successful calls 64.67% 94.06% 87.86%

Figure 111_Quality of the A2A Ciclo Idrico and ASVT service - figures in days

A2A CICLO IDRICO ASVT

2017 2018 2019 2017 2018 2019

Response time to requests for estimate for connection to the aqueduct*

5.16 10.5 9.06 2.30 2.73 3.92

Response time to requests for estimate for connection to the sewers*

3.21 9.64 9.72 1.67 0.85 2.27

* Time charged to the operator.



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


61

District heating and heat management

Figure 112_Transformations*

2017 2018 2019

Transformations (no.) 40 28 37

Capacity installed (kW) 16,918 17,400 11,015

* These refer to replacement of methane with a condensing boiler, of methane with district heating, of diesel with methane with a condensing boiler and of diesel with district heating.

Integrated waste cycle

Figure 113_Population served by the municipal sanitation service

2017 2018 2019

Municipalities served 258 215 218

Population served (thousands) 3,549 3,376 3,449

Figure 114_ Customer Satisfaction of the municipal sanitation service carried out by Amsa in Milan - types of services

2017 2018 2019

Urban waste collection 7.8 7.74 8.31

Road and pavement cleaning and washing 7.29 7.57 7.39

Emptying of large road bins 7.27 7.32 7.46

Cleaning of market areas 7.78 7.61 8.33

Cleaning of green areas 7.06 7.52 7.3

Cleaning and collection during and after events 7.57 7.61 7.98

Cumbersome waste collection 8.3 7.88 8.83

Clarity and completeness of the communication on separate collection 7.86 7.61 8.06

Toll Free Number 7.59 7.9 8.17

Website 7.57 7.68 7.22

Recycling 8.2 7.78 8.5

Snow service - 7.56 7.64

Relational capital

62

Figure 115_ Overall satisfaction index for Amsa municipal sanitation services in the municipalities of the province of Milan

2017 2018 2019

Pioltello 8.1 8.1 8.2

Bresso 8 8 7.8

Buccinasco 8 8.2 8.4

Cormano 8.1 7.8 7.9

Novate Milanese 7.8 8.1 8.1

Pero 8.3 8.3 8.4

San Donato 8.3 7.9 8.4

Segrate 8 8.1 8.2

Settimo Milanese 7.9 8.1 8.4

Trezzano sul Naviglio 8 8 7.9

Cesate 8.3 8.2 8.1

Corsico 8.1 7.9 7.9

Paderno Dugnano - 7.8 7.8

Figure 116_ Services in exchange for payment (waste disposal and other services specifically for private customers) - number of customers served

2017 2018 2019

Amsa 9,091 9,899 5,661

Aprica 1,397 1,375 1,248

La.Bi.Co. Due 259 260 331

LGH Group - 744 633

Figure 117_Waste disposal service

2017 2018 2019

Municipalities served 988 992 1,000

Companies served 3,160 3,150 6,406



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


63

Figure 118_Call centre services

AMSA APRICA

2017 2018 2019 2017 2018 2019

Number of calls to the call centre 376,027 419,383 398,470 80,962 57,618 75,262

Accessibility of lines and services (time when line is free vs operator presence time) 100% 100% 100% 100% 100% 100%

Average waiting time on the telephone (seconds) 76 47 39 52 45 64

Percentage of successful calls 94% 97% 98% 72% 93% 93%

Figure 119_ADR A2A-Consumer associations conciliation procedures - Issues of disputes received

ELECTRICITY GAS DUAL FUEL TOTAL REQUESTSELE/GAS/DUAL WATER

Invoicing 14 7 0 21 1

Market 0 2 0 2 0

Contracts 0 1 1 2 0

Late payment and suspension 0 1 0 1 0

Size 7 14 0 21 3

Connections, works and technical quality 1 0 0 1 0

General total 22 25 1 48 4

Relational capital

64

Relations with suppliers

Figure 120_Number and value of orders by supply type [GRI 204-1]

2017 2018 2019

NO. ORDERS AMOUNT (€) NO. ORDERS AMOUNT (€) NO. ORDERS* AMOUNT (€)

Supplies 7,158 304,069,078 7,058 350,425,198 2,381 299,873,271

Works 2,723 324,169,902 2,233 489,485,553 1,922 341,424,019

Services 7,127 250,124,004 7,062 484,878,866 4,318 477,542,064

A2A Group orders 17,008 878,362,983 16,353 1,324,789,616 8,621 1,118,839,354

LGH orders 4,541 124,628,004 3,767 150,408,338 2,650 114,846,305

Total 21,549 1,002,990,987 20,120 1,475,197,954 11,271 1,233,685,659

* The figure does not include the number of Lumenergia orders.

Figure 121_Geographic breakdown of orders [GRI 204-1]

2017 2018 2019

Lombardy 64.0% 62.7% 59.6%

Other regions of Italy 31.2% 28.9% 36.5%

EU 4.5% 7.5% 3.4%

Non EU 0.3% 0.9% 0.4%

Figure 122_Suppliers with at least one A2A Group certification

2017 2018 2019

Total suppliers with at least one certification 2,215 2,306 2,767

of which activated with order - 1,144 1,092



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


65

Figure 123_Value of orders issued by the A2A Group to suppliers in possession of at least one certification

2017 2018 2019

% 80% 82% 83%

Figure 124_Validated suppliers, by type - A2A Group

2017 2018 2019

Large business (more than 250 employees) 276 317 295

Medium business (50-250 employees) 687 729 770

Small business (10-50 employees) 1,459 1,641 1,572

Micro business (1-10 employees) 1,456 1,523 1,382

NA 567 362 210

Total 4,445 4,572 4,229

Relational capital

66

Dispute management

EmployeesA total of 69 labour disputes were in progress or concluded in 2019 involving employees of A2A Group companies (excluding AMSA and including the LGH group), of which 4 concerned the assessment of the illegitimacy of dismissals for just cause or dismissals for justified subjective reason, 1 concerned the assessment of the illegitimacy of a dismissal for exceeding the period of conduct and 1 concerned the assessment of the illegitimate exclusion of the plaintiff from the business unit disposed of to one of the companies of the A2A Group with the consequent right to the establishment of an employment relationship subordinate to the latter company from the date of disposal of the business unit. In addition, 14 plaintiffs applied for a finding that the sale of the business unit was unlawful, with the result that it was reinstated in the transferor company, and 6 applicants applied for a finding that they were entitled to a higher level of classification and order to pay the relevant differences in remuneration. Then there were 3 plaintiffs seeking compensation for the damage caused by the demotion of which 2 also requested a finding that the measure of secondment ordered against them was unlawful. In addition, in 2019, 3 cases were pending concerning the determination of the entitlement to compensation for damages arising from occupational illness or accident. The remaining cases concerned various requests, such as appeals against disciplinary measures and requests for payment of salary differences other than requests for a higher level of classification.

With regard to Amsa, there were a total of 85 labour disputes in progress or concluded in 2019, of which 9 concerned the assessment of the illegitimacy of dismissals for just cause or justified subjective reason, 1 concerned the assessment of the illegitimacy of dismissals for justified objective reason and 5 concerned the assessment of the illegitimacy of dismissals for exceeding the period of conduct.

In addition, 13 plaintiffs challenged the fixed-term contracts, 19 requested a determination of the right to recognition of the higher classification and an order for payment of the relevant salary differences, 10 a determination of fictitious interposition of labour and determination of the right to the establishment of an employment relationship and 7 a determination of the unlawfulness of the transfer of a business unit. The remaining cases concerned various requests, such as requests for payment of salary differences other than requests for a higher level of classification.

SuppliersThere were 22 labour disputes in progress or concluded in 2019 initiated by workers of contracting firms that worked on contracts awarded by A2A Group companies (excluding Amsa and including the LGH Group). There were 4 proceedings for compensation for damages resulting from occupational illnesses or injuries allegedly contracted during the contract work.Moreover, 1 plaintiff claimed the ascertainment of the right to the establishment of a subordinate contract of employment with the customer company and 17 plaintiffs summonsed the contractor, their employer, to court as well as the A2A Group/LGH company as customer, so as to obtain, by virtue of the joint liability pursuant to Art. 29 of Italian Legislative Decree 276/2003 and Art. 1676 of the Italian Civil Code, their sentencing to pay the salary differences claimed or remaining salaries. As far as Amsa is concerned, during 2019, 2 cases were promoted by 2 workers so that the contracting company and Amsa - the latter jointly and severally liable pursuant to Art. 29 Legislative Decree 276/2003 and Art. 1676 of the Italian Civil Code in as customer - were sentenced to the payment of the salary differences claimed by the same.

Non-compliance with environmental regulations [GRI 307-1]During 2019, 18 environmental proceedings were in progress or concluded; of these, 5 proceedings were closed, 4 are new proceedings (of which three were closed during the year) and 14 were already in progress (5 relating to LGH S.p.A. group companies); these proceedings are related to: (i) allegations of violations of provisions contained in the respective Integrated Environmental Authorizations (A.I.A.), ( ii) certain alleged irregularities in waste management and (iii) alleged non-compliance with other legal or regulatory requirements.

With regard to the 5 proceedings, closed in 2019:• the Preliminary Investigation Judge (GIP) of Milan,

having acknowledged the extinction of the crime following oblation, issued a decision not to proceed in relation to proceedings for alleged violations of A.I.A. regulations;

• the GIP of Brescia ordered the filing of deeds relating to alleged violations of A.I.A. regulations;

• in relation to a hypothesis of irregularities in the management of special non-hazardous waste contested by the Ecological Operating Unit (NOE) of Alessandria, a reduced sanction was ordered and payment was made with the consequent extinction of the sanction at administrative level and filing of the proceedings;



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


67

• the Brescia NOE accused a company of 2 breaches of environmental regulations in relation to a collection centre and an operating unit; the fines were closed following compliance with the instructions given and admission to payment in administrative proceedings and related filing.

In addition, in relation to the investigation for alleged abusive waste management that had involved for liability under Legislative Decree 231/2001 also the companies A2A Ambiente and Linea Ambiente Srl, the GIP of Brescia, not recognizing any liability, ordered that the positions be removed and filed against the two companies and two former employees of Linea Ambiente Srl. The proceedings are still in progress against an employee of A2A Ambiente and an employee of Linea Ambiente.

Customers [GRI 206-1]2019 ended with 26 open legal proceedings relating to billing disputes, due to the application of excise duties on gas supplies, incorrect detection of consumption due to malfunctioning of the meters, incorrect configuration of the available power of the electricity supply, incorrect termination of supply and, more generally, the failure and/or incorrect detection of consumption of electricity, gas and/or water service. There was also 1 ongoing case involving damages claimed due to delays in the activation of supply.

In addition, in 2016, A2A Reti Elettriche (now Unareti) was charged by the Milan Chamber of Commerce Metric Office with alleged administrative violations concerning 63 electric

meters, establishing an administrative sanction of 500 euro per meter. A fine was also ordered against A2A Energia as the “intermediary” in the supply arrangement through the distributor’s meters for 47 of these meters. All of the notices of violations and related penalties have been appealed by the two companies. As regards the sanctions charged by the Metrics Office of Milan Chamber of Commerce and as challenged, in 2017, the competent authority had not yet ruled.

Finally, a dispute continued in 2019 with a customer of Amsa, A2A Ambiente and Aprica, which is claiming contractual termination for excessive costs incurred.

In 2019, a dispute was opened against Linea Più (now AEN) for the payment to a user of the costs incurred by the latter for the restoration of gas supply.

Community [G4 - EU25]At end 2019, there were 80 cases in which citizens requested compensation, for the most part of fairly small value, for financial damages or damages to property or things, while there were 39 cases seeking compensation for physical damages in respect of personal injuries; these include 1 relating to a fatal road accident involving a Group company (an operative vehicle cleaning a cycle path).

Finally, 5 cases of alleged infringements of property rights and 1 case of alleged damage to neighbouring crops from previous years are pending.

The Acsm Agam Group

68

The Acsm Agam Group Group Profile

The Acsm-Agam Group includes 11 companies and is divided into 4 Business Units (BUs):• Networks BU includes the companies that deal with: - water service and gas distribution for the provinces of Monza, Como and Varese; - only gas distribution in the provinces of Lecco and in Veneto; - gas and electricity distribution in the province of Sondrio.• Environment BU deals with waste collection activities (in the province of Varese and Como) and waste-to-energy

(Como);• Sales BU to which the Group companies operating in the sale of natural gas and electricity refer;• Energy and Smart Technologies BU oversees the activities of energy efficiency, electricity generation, heat

management, new innovative and smart city services, public lighting and district heating.

AEVV Farmacie s.r.l., which operates three pharmacies in the city of Sondrio, should also be added to these BUs.

Governance The Company is listed on the Italian stock exchange in Milan and has adopted, since 2016, the Corporate Governance Code promoted by Borsa Italiana. The company's corporate governance structure is based on the traditional organizational model. Currently, all Group companies adopt their own Organization, Management and Control Models in accordance with Italian Legislative Decree 231/2001 (MOG), covering 100% of the Group's employees.

In addition to the control instruments provided for in Legislative Decree 231/2001, the Company has adopted a Code of Ethics, which also contains the main elements of its human rights policy: in 2018, there were no episodes of violation of the Code.

In 2019, there were no cases of corruption and no cases of corruption are pending.

Moreover, the company policy does not provide for the payment of contributions of any kind to parties or politicians.

In March 2019, the Group introduced the function of Risk Manager within the Chief Risk Officer organizational structure. The purpose of this function is to support the Chief Executive Officer with regard to Energy Risk Management and Enterprise Risk Management (ERM) to:define the Energy Risk Management strategy, ensuring its implementation and periodic monitoring, as well as the management of critical cases;ensure the management of activities related to the identification, evaluation and definition of corrective actions and the monitoring of corporate risks.

These activities contribute to the definition of the company's risk profile and therefore the company's strategies. In particular, the Enterprise Risk Management (ERM) programme has the dual objective to:• institutionalize and formalize a tool to support business decisions and assess the Group's main risks and

opportunities;• contribute relevant information to the drafting of the annual Audit Plan.

During 2019, the integration of the mapping of the main non-financial risks into the Enterprise Risk Management system was started. Please refer to the Group's NFD for further details.



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


69

Economic value generated and distributed

Figure 125_ Statement for distributing the gross global added value - millions of euro

2018 2019

Remuneration of personnel 36.41 55.11

- Wages and salaries 34.35 48.41

- Employees’ leaving entitlement (TFR) 1.72 2.29

- Other costs 0.34 4.41

Remuneration of risk capital 6.2 14.70

- Profits distributed 5.16 14.48

- Minorities 1.06 0.22

Remuneration of borrowed capital 0.92 0.65

Transfers to the government 6.96 9.17

- Direct taxes for the Treasury 6.6 8.52

- Other taxes and duties for the Treasury 0.32 0.61

- Social security charges 0.04 0.04

Transfers to the local community 2.65 3.20

- Direct taxes for local authorities 1.55 1.79

- Local taxes and duties 0.52 0.66

- Sponsorships, contributions to foundations, aid, donations, charities 0.58 0.75

Remuneration of the company 296.9 301.44

- Reserves 269.81 262.92

- Amortization, depreciation 27.09 38.52

Gross global value added 350.06 384.27

Figure 126_ Investments in Group infrastructure

2018 2019

millions of euro 31.7 60.9

Efficient infrastructure management

INSTALLED CAPACITY 2018 2019

Electrical MWe 45 46

Thermal MWt 245 245

ENERGY PRODUCTION 2018 2019

Electrical GWhe 149 126

Thermal GWht 300 257

The Acsm Agam Group

70

DISTRIBUTION OF NATURAL GAS 2018 2019

Natural gas distributed Mm3 621 611

Gas network extension km 3,247 3,258

ELECTRICITY DISTRIBUTION 2018 2019

Electricity distributed GWh 161 161

Electricity losses in the grid GWh 4 4

Extension of the electricity distribution service

km 556 560

of which underground

cable (km)427 429

THERMAL ENERGY RELEASED TO THE NETWORK 2018 2019

Thermal energy distributed GWh 191 197

INTEGRATED WATER SERVICE 2018 2019

Wells no. 96 98

Sources no. 168 189

Water purification systems no. 18 18

Total network length km 1,659 1,694

Water delivered to the user and accounted for Mm3 27.8 27.6

Water collected Mm3 43 44

Network losses and water not booked Mm3 15 16

URBAN WASTE COLLECTED2018 2019

TONNES OF WASTE % OF TOTAL TONNES OF

WASTE % OF TOTAL

Disposal (landfill or other type D destination) 2,791.00 4% 463.48 1%

Waste-to-energy plant 14,378.00 19% 14,722.38 18%

Recovery 58,871.00 77% 67,620.24 81%

TOTAL 76,040.00 100% 82,806.1 100%

1. Source of emission coefficients for natural gas/methane, diesel and oil, petrol and waste: Ministry of the Environment and Protection of Land and Sea, National Standard Parameter Table, 2018.

2. The reporting standard used (GRI Sustainability Reporting Standards 2018) provides two different approaches for calculating Scope 2 emissions:

"Location-based" and "market-based". The "Location-based" approach involves the use of a national average emission factor related to the specific national energy mix for power generation (source of emission factors: TERNA, International Comparisons, 2017).

3. The "market-based" approach involves the use of an emission factor defined on a contractual basis with the electricity supplier. Given the absence of specific contractual agreements between the Group companies and the electricity supplier (e.g. purchase of Guarantee of Origin certificates), the emission factor relating to the national "residual mix" (source of the AIB European Residual Mixes 2017 (Version 1.13, 2018-07-11)) was used for this approach.



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


71

URBAN WASTE COLLECTED2018 2019

TONNES OF WASTE

% DIFFERENTIATED COLLECTION

TONNES OF WASTE

% DIFFERENTIATED COLLECTION

Varese 40,207.00 69% 40,109.92 69.9%

Province of Varese 31,265.00 81% 78,272.48 75.56%

Province of Como 4,568.00 75% 4,533.62 72.1%

TOTAL 76,040.00 75% 122,916.02 74%

Environmental responsibility

RESOURCES USED 2018 2019

Fuel (TJ) 1,986 1,663

Automotive fuels (TJ) 2,188.15 42.68

Electricity (GWh) 46 44

Water resource consumed (thousands m3) 368 342

Aqueduct 356 337

Well 12 5

Chemical products and materials used (t) 6,269 3,797

EMISSIONS 2018 2019

Scope 1 t 144,359.14 117,115.72

Scope 2 t 14,631.89 15,793.25

Scope 2 t 18,728.82 21,261.10

POLLUTING EMISSIONS

NOX t 82 66

SO2 t 0.6 0.3

Powders t 0.1 0.1

CO t 22 25

Fluoride gases kg 13 19

INDUSTRIAL WASTEWATER 2018 2019

Volumes (m3)

Discharged into sewers 165,023 152,039

Discharged into surface water 15,493 0

Water extracted for hydroelectric generation 93,398 98,940

The Acsm Agam Group

72

TOTAL WASTE PRODUCED

WASTE PRODUCED 2018 2019

Non-hazardous waste t 17,475.44 12,971.56

Hazardous waste t 2,232.90 1,726.66

Total t 19,708.33 14,698.22

Of which for recovery % 93% 93%

Responsible management of people

Breakdown of employees and collaborators by gender at December 31, 2018

PEOPLE2018 2019

MEN WOMEN TOTAL MEN WOMEN TOTAL

Employees 641 224 865 669 233 902

Permanent 627 219 846 663 233 896

Temporary Contract 14 5 19 6 6

Collaborators 39 19 58 26 12 38

Total 680 243 923 695 245 940

of which with part-time contract 5 46 51 5 42 47

NEW HIRES, OUTGOING, TURNOVER 2018 2019

Hires no. 36 88

Outgoing no. 30 51

Turnover % 4% 6%

PERCENTAGE OF WORKERS REPRESENTED IN FORMAL HEALTH AND SAFETY COMMITTEES 2018 2019

Percentage 100% 100%

Injuries to employees by gender and days lost

NO. PEOPLE2018 2019

MEN WOMEN TOTAL MEN WOMEN TOTAL

Injuries at work (no.) 25 1 26 38 4 42

Days lost due to injuries at work (no.) 1,041 52 1,093 953 132 1,085

4 The average number of hours per capita was calculated on the total number of employees in the Group's workforce.



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


73

Breakdown of employees by professional category, gender and age group at December 31, 2018

NO. PEOPLE

2018 2019

MANAGERS SUPER-VISORS

WHITE-COLLAR

WORKERS

BLUE-COLLAR

WORKERSTOTAL MANAGERS SUPER-

VISORS

WHITE-COLLAR

WORKERS

BLUE-COLLAR

WORKERSTOTAL

Men 20 36 218 366 641 21 40 217 391 669

Women 2 14 208 1 224 2 13 217 1 233

Total 22 50 426 367 865 23 53 434 392 902

<30 - 1 35 23 59 0 0 35 32 67

30-50 7 27 252 168 454 7 33 247 180 467

>50 15 22 139 176 352 16 20 152 180 368

Total 22 50 426 367 865 23 53 434 392 902

COMPANY POPULATION IS COVERED BY COLLECTIVE BARGAINING 2018 2019

Percentage 100% 100%

Increasing digitization has led to an increased risk of cyber threats due to increased vulnerability of ICT systems and infrastructures. For this reason, during 2019, the Group promoted training courses on Cybersecurity.

During 2019, the Group provided training courses for 97 people (for a total of 194) on 231 Organization and Management Models and Code of Ethics.

Hours of training broken down by gender at December 31, 2019

EMPLOYEES TRAINED SHAREHOLDINGS NUMBER OF

HOURS

AVERAGE ANNUAL HOURS OF

TRAINING PER EMPLOYEE

Men 593.00 1,766.00 8,145.00 12.17

Women 209.00 593.00 2,014.00 8.64

Hours of training broken down by professional category at December 31, 2019

EMPLOYEES TRAINED SHAREHOLDINGS NUMBER OF

HOURS

AVERAGE ANNUAL HOURS OF

TRAINING PER EMPLOYEE

Managers 21.00 86.00 517.25 22.49

Supervisors 53.00 289.00 1,095.00 20.66

White-collar workers 401.00 1,200.00 4,405.50 10.15

Blue-collar workers 327.00 787.00 4,141.25 10.56

The Acsm Agam Group

74

Relations with customers

NUMBER OF PDRS AND MUNICIPALITIES SERVED BY THE GAS DISTRIBUTION SERVICE 2018 2019

PDR no. 314,066 314,210

Municipalities served no. 88 88

NUMBER OF USERS AND MUNICIPALITIES SERVED BY THE ELECTRICITY DISTRIBUTION SERVICE 2018 2019

POD no. 25,757 25,809


NUMBER OF USERS AND MUNICIPALITIES SERVED BY THE MUNICIPAL SANITATION SERVICE 2018 2019

Users no. 154,858 185,140


MUNICIPALITIES AND CUSTOMERS SERVED BY THE WATER SERVICE 2018 2019

Municipalities served by aqueduct service no. 37 37

Customers served aqueduct no. 83,178 83,613

Inhabitants served by aqueduct no. 312,958 312,958

USERS CONNECTED TO THE DISTRICT HEATING SERVICE 2018 2019

Users no. 623 629

CONTRACTS BY TYPE OF GAS SALES SERVICE PROVISION 2018 2019

Protected market no. 165,184 142,503

Free market no. 101,094 111,711

Total 266,278 254,214

CONTRACTS BY TYPE OF ELECTRICITY SALES SERVICE PROVISION 2018 2019

Protected market no. 18,196 16,229

Free market no. 42,791 55,137

Total 60,987 71,366



Financial capital


Natural capital

Human capital

Relational capital

The Acsm Agam Group


75

Supply Chain

The Group adopts a register of suppliers (divided into product categories) whose qualification criteria do not constitute barriers to entry. Each selection procedure must be carried out in accordance with the widest possible conditions of competition. There are no evaluations of suppliers, who intend to qualify, on environmental or social issues. Almost all orders are from Italian suppliers, of which about 69% are based in Lombardy. In addition, 1,001 suppliers were activated with at least one order as at December 31, 2019, all in the Group's register of suppliers.

Number of Group orders by type

ORDERS2018 2019

NO. € NO. €

Supplies 863 19,258,619 1,031 25,965,199

Works 164 17,553,382 181 24,473,247

Services 1,078 23,930,446 1,366 49,987,597

Sponsorships 96 270,049 56 291,455

Other 12 272,923 36 456,866

TOTAL 2,213 61,285,419 2,671 101,174,364

DisputesWith regard to possible cases of non-compliance with environmental laws and regulations, the following is to be noted: Following the AIA inspection visit note no. 0201566 of 12/19/2019 at the ACSM-AGAM plant in via Scalabrini 123, Como, by ARPA Lombardia, the hypotheses in contravention of environmental protection regulations were found (Integrated environmental authorization no. 16278 of 11/12/2018 - failure to comply with the post-combustion temperature of at least 850°C to service the waste-to-energy process as prescribed by the authorization on 05/07/2018, with the penalty provided for by Legislative Decree 152/06, as amended Art. 29 quattordecies paragraph 3 point b with a fine ranging from 5,000 to 26,000 euro;)

Having regard to Articles 318-bis and following of Legislative Decree 152/06 and considering that the checks carried out show that the conduct ascertained is currently exhausted and that there are no further effects to be removed as there are no dangerous situations or potentially dangerous activities to be stopped, the Judicial Police Officer on duty at ARPA does not see any useful prescription to be given. It therefore provides for the direct admission to the payment, at the administrative office, of the sum of 6,500 euro, corresponding to a quarter of the maximum fine established for the contravention committed. It should be noted that Acsm Agam Ambiente made the payment of 6,500.00 euro on January 24, 2020 and sent the relative receipt to ARPA Lombardia Settore APC UO Emissioni on January 27, 2020.

There are no cases of non-compliance or sanctions with respect to laws or regulations concerning social and economic matters.

No disputes have arisen with Group customers (with the exception of those relating to debt collection in which the company is a plaintiff), either for non-compliance linked to impacts on consumer health and safety or for supply services and related marketing activities.

In 2019, the companies of the ACSM-AGAM Group were not affected by disputes concerning anti-competitive, anti-trust and monopolistic practices.

With respect to the management of privacy, in 2019, the Group did not record evidence of theft of information on customer data, or complaints from private individuals or institutions regarding possible violations.

A2A S.p.A.Registered o� ce:

Via Lamarmora, 230 - 25124 BresciaT [+39] 030 35531 F [+39] 030 3553204

Managerial and administrative headquarters:Corso Porta Vittoria, 4 - 20122 Milan

T [+39] 02 77201 F [+39] 02 77203920

Created by:S.O. Corporate Communication and Media Relations

S.O. Environment, Health and SafetyT [+39] 02 77201 - [email protected] - www.a2a.eu

We would like to thank all our colleagues of A2A who worked on the preparation of this Report.

Graphic design and layout:BOUTIQUE CREATIVA

MERCURIO GP

Printing:AGEMA S.p.A.

Milan, April 2020

2019

|

Sup

plem

ent t

o th

e In

tegr

ated

Rep

ort

Cons

olid

ated

Dis

clos

ure

of N

on-F

inan

cial

Info

rmat

ion

in

acco

rdan

ce w

ith

Ital

ian

Legi

slat

ive

Dec

ree

n. 2

54/2

016

a2a.eu

2019 supplement to the integrated report...energy transition initiatives enabling the process of...

Documents